Maybank-AR2021-Financial-Statements-Book

MAYBANK ANNUAL REPORT 2021 199 OUR PERFORMANCE
Pg. 1-6
NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

54. FINANCIAL RISK MANAGEMENT POLICIES (CONT’D.) THE FINANCIALS
Pg. 7-267
(g) Liquidity risk management (cont’d.)

3. Contractual maturity of financial liabilities on an undiscounted basis

The tables below analyse the cash flows payable by the Group and the Bank under non-derivative financial liabilities by remaining contractual
maturities as at 31 December 2021 and 31 December 2020. The amounts disclosed in the table will not agree to the carrying amounts reported in
the statements of financial position as the amounts incorporated all contractual cash flows, on an undiscounted basis, relating to both principal and
interest/profit analysis. The Group and the Bank manage inherent liquidity risk based on discounted expected cash flows.

Group Up to 1 >1 to 3 >3 to 6 >6 months >1 to 3 >3 to 5 Over 5 Total
2021 month months months to 1 year years years years RM’000
RM’000 RM’000 RM’000 RM’000
Non-derivative liabilities RM’000 RM’000 RM’000
Deposits from customers
Investment accounts of customers 378,388,993 79,691,080 62,930,566 55,189,910 14,579,874 141,414 1,266,681 592,188,518
Deposits and placements from financial institutions 25,215,340 789,302 1,246,591 1,499,101 5,025 5,773 – 28,761,132
Obligations on financial assets sold under repurchase agreements 4,117,994 3,713,923 6,716,428 36,884,645
Financial liabilities at fair value through profit or loss 1,591,914 18,899,443 1,112,328 2,620,546 222,930 593,381 7,823,703
Bills and acceptances payable 4,628,991 122,141 79,694 62,368 226,267 11,359,486
Insurance/takaful contract liabilities and other insurance payables – 18,450 22,400 – 11,318,636 1,077,999
Other liabilities 1,076,905 – 1,094 – – – 42,117,757
Borrowings 31,207,703 – – – – 21,556,307
Subordinated obligations 10,113,816 – – 231,020 – 10,679,034 37,091,172
Capital securities 3,045,839 535,583 1,481,137 1,472,446 5,046,973 999,124 1,907,228 11,713,643
3,203,587 4,871,320 2,937,638 16,589,005 4,016,707 2,427,076 3,273,911
– 1,792 4,482,869 6,078,856 1,144,807
– – 1,734 3,585 1,391,774 1,882,137
– – –
454,758,504 107,749,778 12,918,946 31,445,247 793,848,273
74,386,956 69,184,856 43,403,986

Commitments and contingencies 907,236 1,982,597 2,385,005 4,194,591 1,366,455 91,985 458,574 11,386,443
Direct credit substitutes 1,272,559 955,665 2,343,405 2,844,939 5,483,056 1,623,370 293,521 14,816,515
Certain transaction-related contingent items 1,044,329 2,952,705
Short-term self-liquidating trade-related contingencies 89,406,092 1,443,335 337,403 125,810 1,828 – – 168,609,780
Irrevocable commitments to extend credit 6,450,251 5,314,453 884,987 33,730,119 21,550,955 17,129,610 593,564 12,253,800
Miscellaneous 2,958,044 1,287,232 1,270,993
99,080,467 144,093 133,265 9,922
12,654,094 7,238,032 42,166,452
28,546,387 18,978,230 1,355,581 210,019,243

Group Up to 1 >1 to 3 >3 to 6 >6 months >1 to 3 >3 to 5 Over 5 Total
2020 month months months to 1 year years years years RM’000
RM’000 RM’000 RM’000 RM’000
Non-derivative liabilities RM’000 RM’000 RM’000
Deposits from customers
Investment accounts of customers 338,958,016 81,888,783 55,690,812 54,264,193 27,067,714 147,698 1,402,395 559,419,611
Deposits and placements from financial institutions 19,884,546 1,067,351 1,561,253 1,357,145 9,648 4,652 – 23,884,595
Obligations on financial assets sold under repurchase agreements 16,353,410 10,077,827 2,328,171 4,505,075 38,050,840
Financial liabilities at fair value through profit or loss 3,133,501 6,035,839 4,210,466 240,159 335,732 11,172,553
Bills and acceptances payable 459,334 – 1,543,879 – – 9,921,990
Insurance/takaful contract liabilities and other insurance payables – – – – –
Other liabilities 991,971 1,425 – – – 9,921,990 998,439
Borrowings 29,929,562 5,043 198,838 – – – 37,717,736
Subordinated obligations 9,421,195 – – 820,635 – 21,680,712
Capital securities 1,739,742 378,626 756,937 6,706,760 1,939,275 7,589,336 40,091,656
3,146,084 843,156 2,555,781 16,337,175 6,871,138 1,571,065 10,839,346
Commitments and contingencies – 7,738,936 – 328,155 4,958,850 3,501,644 3,389,561
Direct credit substitutes – 1,754 – 1,442,643 2,993,110
Certain transaction-related contingent items – 1,696 64,458,604 1,946,918
Short-term self-liquidating trade-related contingencies – 56,203,797 15,604,415
Irrevocable commitments to extend credit 420,411,943 102,597,689 29,262,190 757,167,039
Miscellaneous 68,628,401

2,424,631 586,988 1,592,744 4,045,750 1,741,525 48,365 500,743 10,940,746
1,714,694 1,284,036 1,476,093 3,601,873 4,615,332 1,397,082 249,012 14,338,122
1,711,806 2,788,743
95,698,572 959,497 84,782 26,730 5,928 – – 167,282,755
4,451,705 306,896 63,288 28,018,303 24,201,753 18,662,902 331,041 5,728,133
412,289 69,101
106,001,408 500,331 153,659 141,038 10
3,549,706 3,286,008
36,192,987 30,718,197 20,249,387 1,080,806 201,078,499

200

NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

54. FINANCIAL RISK MANAGEMENT POLICIES (CONT’D.)

(g) Liquidity risk management (cont’d.)

3. Contractual maturity of financial liabilities on an undiscounted basis (cont’d.)

The tables below analyse the cash flows payable by the Group and the Bank under non-derivative financial liabilities by remaining contractual
maturities as at 31 December 2021 and 31 December 2020. The amounts disclosed in the table will not agree to the carrying amounts reported in
the statements of financial position as the amounts incorporated all contractual cash flows, on an undiscounted basis, relating to both principal and
interest/profit analysis. The Group and the Bank manage inherent liquidity risk based on discounted expected cash flows (cont’d.).

Bank Up to 1 >1 to 3 >3 to 6 >6 months >1 to 3 >3 to 5 Over 5 Total
2021 month months months to 1 year years years years RM’000
RM’000 RM’000 RM’000 RM’000
Non-derivative liabilities RM’000 RM’000 RM’000
Deposits from customers
Deposits and placements from financial institutions 187,207,540 38,611,354 28,439,648 21,559,299 1,012,339 84,931 – 276,915,111
Obligations on financial assets sold under repurchase agreements 16,035,675 17,570,180 2,487,995 2,046,184 3,158,614 45,348 307,025 41,651,021
Financial liabilities at fair value through profit or loss 18,503,527 4,628,991 1,112,328 62,368 226,267 24,735,316
Bills and acceptances payable 122,141 79,694 11,318,636 11,359,486
Other liabilities – – 18,450 22,400 – –
Borrowings 429,356 – 1,094 – – – – 430,450
Subordinated obligations 1,114,557 548,547 1,373,389 116,777 386,307 7,817,486
Capital securities 672,287 1,906,779 4,046,151 1,275,441 3,002,468 4,016,707 2,395,417 29,604,667
– 3,154,418 13,412,908 6,078,856 830,140 11,063,088
– – – 4,154,092 1,391,774 1,882,137 3,273,911
– – –
63,265,851 – – 11,796,761 17,345,929 406,850,536
223,962,942 36,488,868
29,170,070 24,820,115

Commitments and contingencies 333,347 1,816,781 1,922,265 2,802,693 1,051,546 33,519 8,193 7,968,344
Direct credit substitutes 964,335 815,077 1,684,854 2,275,923 4,068,662 1,223,743 175,542 11,208,136
Certain transaction-related contingent items 655,753 969,133 2,038,008
Short-term self-liquidating trade-related contingencies 72,755,040 288,799 122,495 1,828 – – 100,416,290
Irrevocable commitments to extend credit 2,411,826 5,314,453 884,987 2,656,783 11,134,358 7,670,669 – 7,930,317
Miscellaneous 2,947,776 1,278,907 1,184,479 9,912
77,120,301 – 97,417 129,561,095
11,863,220 6,059,812 9,042,373 193,647
16,256,394 9,025,348

Bank Up to 1 >1 to 3 >3 to 6 >6 months >1 to 3 >3 to 5 Over 5 Total
2020 month months months to 1 year years years years RM’000
RM’000 RM’000 RM’000 RM’000
Non-derivative liabilities RM’000 RM’000 RM’000
Deposits from customers
Deposits and placements from financial institutions 170,081,973 34,713,264 21,403,539 22,353,228 1,779,292 87,543 – 250,418,839
Obligations on financial assets sold under repurchase agreements 18,795,958 8,841,024 1,949,387 4,439,486 512,143 77,004 239,770 34,854,772
Financial liabilities at fair value through profit or loss 28,924,040 6,035,839 36,963,092
Bills and acceptances payable 459,334 – 1,543,879 – – 9,921,990
Other liabilities – – – – – – 9,921,990
Borrowings 452,149 1,425 – – – 458,617
Subordinated obligations 197,592 402,826 5,043 468,916 1,257,431 – 8,360,882
Capital securities 723,317 2,317,523 582,974 1,573,415 4,210,827 6,627,213 1,240,316 34,854,737
7,276,379 2,086,902 12,864,393 4,958,850 3,472,497 10,038,862
Commitments and contingencies – – – 1,442,643 2,993,110 3,389,561
Direct credit substitutes – – – – 1,946,918
Certain transaction-related contingent items – 30,921,947 – 14,450,684
Short-term self-liquidating trade-related contingencies 219,175,029 52,311,901 19,814,601 389,261,352
Irrevocable commitments to extend credit 31,676,656 20,910,534
Miscellaneous
1,863,752 401,956 992,069 2,691,284 1,480,467 36,506 643 7,466,677
1,412,077 1,107,513 1,259,595 3,096,979 3,463,466 1,110,105 56,336 11,506,071
1,283,296 2,092,315
73,706,546 717,286 60,007 25,798 5,928 – – 101,634,789
2,273,723 306,896 63,288 729,795 13,742,563 12,754,660 331,041 3,294,116
397,953 60,207 402,485
80,539,394 52,639 107,109 –
2,931,604 2,435,166 6,946,341
18,745,063 14,008,380 388,020 125,993,968

MAYBANK ANNUAL REPORT 2021 201 OUR PERFORMANCE
Pg. 1-6
NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

54. FINANCIAL RISK MANAGEMENT POLICIES (CONT’D.) THE FINANCIALS
Pg. 7-267
(g) Liquidity risk management (cont’d.)

3. Contractual maturity of financial liabilities on an undiscounted basis (cont’d.)

The tables below analyse the Group’s and the Bank’s derivative financial liabilities that will be settled on a net basis into relevant maturity groupings
by remaining contractual maturities as at 31 December 2021 and 31 December 2020. The amounts disclosed in the tables are the contractual
undiscounted cash flows.

Group Up to 1 >1 to 3 >3 to 6 >6 months >1 to 3 >3 to 5 Over 5 Total
2021 month months months to 1 year years years years RM’000
RM’000 RM’000 RM’000 RM’000
Net settled derivatives RM’000 RM’000 RM’000

Derivative financial liabilities (39,481) (93,433) (85,751) (106,492) (186,356) 1,793 – (509,720)
Trading derivatives (483,921) (434,486) (32,535) (73,065) (483,961) (242,676) (4,144,017) (5,894,661)
– Foreign exchange related contracts (36,932) (10,245)
– Interest rate related contracts 2,766 – 12,766 – – (31,645)
– Equity related contracts
(3,229) (68) (124) (266) (608) 68 471 (3,756)
Hedging derivatives (563,563) (538,232) (115,644) (179,823) (658,159) (240,815) (4,143,546) (6,439,782)
– Interest rate related contracts

Gross settled derivatives (102,028,195) (50,907,110) (32,669,363) (20,159,244) (14,925,136) (4,763,617) (2,478,968) (227,931,633)
101,824,660 50,843,376 32,508,939 20,320,010 14,080,660 4,510,056 2,403,763 226,491,464
Derivative financial liabilities
Trading derivatives (419,141) (382,204) (1,465,442) (55,091) (3,674,356) (743,886) (806,602) (7,546,722)
Derivatives: 419,648 373,953 1,354,554 21,963 3,532,437 701,963 722,598 7,127,116
– Outflow
– Inflow (203,028) (71,985) (271,312) 127,638 (986,395) (295,484) (159,209) (1,859,775)

Hedging derivatives
Derivatives:
– Outflow
– Inflow

Group Up to 1 >1 to 3 >3 to 6 >6 months >1 to 3 >3 to 5 Over 5 Total
2020 month months months to 1 year years years years RM’000
RM’000 RM’000 RM’000 RM’000
Net settled derivatives RM’000 RM’000 RM’000

Derivative financial liabilities 14,260 (55,005) 32,270 (15,875) (20,843) 156 104 (44,933)
Trading derivatives (1,868,093) (169,446) (641,598) (827,620) (2,352,388) (1,147,687) (3,291,268) (10,298,100)
– Foreign exchange related contracts (77,143) (40,647) (104,772)
– Interest rate related contracts (3,444) 3,300 – – (222,706)
– Equity related contracts
(2,543) 2,168 – 1,929 (263) – – 1,291
Hedging derivatives (1,859,820) (299,426) (649,975)
– Interest rate related contracts (946,338) (2,370,194) (1,147,531) (3,291,164) (10,564,448)

Gross settled derivatives (207,019,665) (118,300,558) (33,728,811) (12,961,426) (16,539,207) (6,122,952) (4,912,711) (399,585,330)
206,699,099 117,798,685 33,282,244 12,879,944 15,548,217 5,418,166 4,524,793 396,151,148
Derivative financial liabilities
Trading derivatives (416,595) (3,767) (10,501) (25,996) (3,088,778) (237,680) (469,195) (4,252,512)
Derivatives: 407,699 4,511 9,748 16,386 2,966,636 251,642 550,147 4,206,769
– Outflow
– Inflow (329,462) (501,129) (447,320) (91,092) (1,113,132) (690,824) (306,966) (3,479,925)

Hedging derivatives
Derivatives:
– Outflow
– Inflow

202

NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

54. FINANCIAL RISK MANAGEMENT POLICIES (CONT’D.)

(g) Liquidity risk management (cont’d.)

3. Contractual maturity of financial liabilities on an undiscounted basis (cont’d.)

The tables below analyse the Group’s and the Bank’s derivative financial liabilities that will be settled on a net basis into relevant maturity groupings
by remaining contractual maturities as at 31 December 2021 and 31 December 2020. The amounts disclosed in the tables are the contractual
undiscounted cash flows (cont’d.).

Bank Up to 1 >1 to 3 >3 to 6 >6 months >1 to 3 >3 to 5 Over 5 Total
2021 month months months to 1 year years years years RM’000
RM’000 RM’000 RM’000 RM’000
Net settled derivatives RM’000 RM’000 RM’000

Derivative financial liabilities (40,946) (94,070) (85,751) (106,492) (186,356) – – (513,615)
Trading derivatives (484,021) (434,677) (32,502) (74,836) (488,560) (245,603) (4,144,017) (5,904,216)
– Foreign exchange related contracts (12,839) (10,245)
– Interest rate related contracts 2,766 – 12,766 – – (7,552)
– Equity related contracts
(3,229) (68) (124) (266) (608) 68 471 (3,756)
Hedging derivatives (541,035) (539,060) (115,611) (181,594) (662,758) (245,535) (4,143,546) (6,429,139)
– Interest rate related contracts

Gross settled derivatives (98,960,043) (49,609,504) (31,054,510) (19,901,924) (14,893,970) (4,698,943) (2,349,214) (221,468,108)
98,784,505 49,608,756 30,916,179 20,128,737 14,056,244 4,454,785 2,282,357 220,231,563
Derivative financial liabilities
Trading derivatives (419,141) (382,204) (1,465,442) (55,091) (3,674,356) (743,886) (806,602) (7,546,722)
Derivatives: 419,648 373,953 1,354,554 21,963 3,532,437 701,963 722,598 7,127,116
– Outflow
– Inflow (175,031) (8,999) (249,219) 193,685 (979,645) (286,081) (150,861) (1,656,151)

Hedging derivatives
Derivatives:
– Outflow
– Inflow

Bank Up to 1 >1 to 3 >3 to 6 >6 months >1 to 3 >3 to 5 Over 5 Total
2020 month months months to 1 year years years years RM’000
RM’000 RM’000 RM’000 RM’000
Net settled derivatives RM’000 RM’000 RM’000

Derivative financial liabilities 12,763 (55,656) 32,217 (15,875) (22,438) – – (48,989)
Trading derivatives (1,868,195) (171,812) (639,383) (829,462) (2,358,724) (1,150,684) (3,291,268) (10,309,528)
– Foreign exchange related contracts (77,296) (41,031) (104,772)
– Interest rate related contracts (4,973) 3,300 – – (224,772)
– Equity related contracts
(2,543) 2,168 – 1,929 (263) – – 1,291
Hedging derivatives (1,862,948) (302,596) (648,197)
– Interest rate related contracts (948,180) (2,378,125) (1,150,684) (3,291,268) (10,581,998)

Gross settled derivatives (202,302,363) (113,316,333) (30,734,138) (12,723,662) (15,002,250) (5,787,941) (3,712,885) (383,579,572)
202,024,597 113,084,411 30,425,367 12,731,340 14,072,500 5,106,989 3,417,324 380,862,528
Derivative financial liabilities
Trading derivatives (416,595) (3,767) (10,501) (25,996) (3,088,778) (237,680) (469,195) (4,252,512)
Derivatives: 407,699 4,511 9,748 16,386 2,966,636 251,642 550,147 4,206,769
– Outflow
– Inflow (286,662) (231,178) (309,524) (1,932) (1,051,892) (666,990) (214,609) (2,762,787)

Hedging derivatives
Derivatives:
– Outflow
– Inflow

MAYBANK ANNUAL REPORT 2021 203 OUR PERFORMANCE
Pg. 1-6
NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

54. FINANCIAL RISK MANAGEMENT POLICIES (CONT’D.) For disclosure purposes, the level in the hierarchy within which the THE FINANCIALS
instruments are classified in its entirety is based on the lowest level Pg. 7-267
(h) Non-financial risk management input that is significant to the position’s fair value measurements:
Non-financial risk is defined as the risk of loss resulting from inadequate • Level 1: Quoted prices (unadjusted) in active markets for identical
or failed internal processes, people and systems or from external events.
This definition includes legal risk, but excludes strategic and reputational assets and liabilities
risk. In Maybank, the management of operational risk has evolved to Refers to financial instruments which are regarded as quoted in an
encompass a wider range of non-financial risks such as business
continuity risk and outsourcing risk. active market if quoted prices are readily and regularly available
The Group’s Non-Financial Risk (“NFR”) management is premised on from an exchange, and those prices which represent actual and
the three lines of defence concept. Risk-taking units (Strategic Business regularly occurring market transactions in an arm’s length basis.
Unit), as first line of defence are primarily responsible for the day-to- Such financial instruments include actively traded government
day management of non-financial risks within their respective business securities, listed derivatives and cash products traded on exchange.
operations. They are responsible for establishing and maintaining their • Level 2: Valuation techniques for which all significant inputs are, or
respective operational manuals and ensuring that activities undertaken are based on, observable market data
by them comply with the Group’s NFR framework. Refers to inputs other than quoted prices included within Level 1
The NFR team, as the second line of defence, is responsible for the that are observable for the asset or liability, either directly (i.e. prices)
formulation and implementation of non-financial risk management or indirectly (i.e. derived from prices). Examples of Level 2 financial
policy within the Group, which encompasses the non-financial risk instruments include over-the-counter (“OTC”) derivatives, corporate
management strategy and governance structure. The NFR team is also and other government bonds, illiquid equities and consumer loans
responsible for the development and implementation of non-financial and financing with homogeneous or similar features in the market.
risk management tools and methodologies to identify, measure, control, • Level 3: Valuation techniques for which significant inputs are not
report and monitor non-financial risks. based on observable market data
The Group’s Audit plays the third line of defence by providing Refers to instruments where fair value is measured using significant
independent assurance in respect of the overall effectiveness of the unobservable inputs. The valuation techniques used are consistent
non-financial risk management process, which includes performing with Level 2 but incorporates the Group’s and the Bank’s own
independent review and periodic validation of the NFR policy and assumptions and data. Examples of Level 3 instruments include
process as well as conducting regular review on implementation of corporate bonds in illiquid markets, private equity investments and
NFR tools by NFR and the respective business units. loans and financing priced primarily based on internal credit
assessment.
55. FAIR VALUE MEASUREMENTS
(b) Valuation techniques
This disclosure provides information on fair value measurements for financial The valuation techniques used for the financial and non-financial assets
and non-financial assets and financial liabilities and are structured as follows: and financial liabilities that are not determined by reference to quoted
(a) Valuation principles; prices (Level 1) are described below:
(b) Valuation techniques; Derivatives
(c) Fair value measurements and classification within the fair value hierarchy; The fair values of the Group’s and the Bank’s derivative instruments
(d) Transfers between Level 1 and Level 2 in the fair value hierarchy; are derived using discounted cash flows analysis, option pricing and
(e) Movements of Level 3 instruments; benchmarking models.
(f) Sensitivity of fair value measurements to changes in unobservable Financial assets designated upon initial recognition at fair value
through profit or loss, financial investments at fair value through
input assumptions; and profit or loss and financial investments at fair value through other
(g) Financial instruments not measured at fair value. comprehensive income
The fair values of these financial assets/financial investments are
(a) Valuation principles determined by reference to prices quoted by independent data providers
Fair value is defined as the price that would be received for the sale of and independent brokers. Fair values for unquoted equity securities
an asset or paid to transfer a liability in an orderly transaction between held for socio economic reasons (classified as Level 3) are determined
market participants in the principal or most advantageous market as of based on the net tangible assets of the companies.
the measurement date. The Group and the Bank determine the fair value Loans, advances and financing at fair value through profit or loss and
by reference to quoted prices in active markets or by using valuation at fair value through other comprehensive income
techniques based on observable inputs or unobservable inputs. The fair values are estimated based on expected future cash flows of
Management judgement is exercised in the selection and application contractual instalment payments, discounted at applicable and prevailing
of appropriate parameters, assumptions and modelling techniques rates at reporting date offered for similar facilities to new borrowers
where some or all of the parameter inputs are not observable in with similar credit profiles.
deriving fair value. The Group established a framework and policies Financial liabilities at fair value through profit or loss
that provide guidance concerning the practical considerations, principles The fair values of financial liabilities designated at fair value through
and analytical approaches for the establishment of prudent valuation profit or loss were derived using discounted cash flows.
for financial instruments measured at fair value. Investment properties
Valuation adjustment is also an integral part of the valuation process. The fair values of investment properties are determined by an accredited
Valuation adjustment is to reflect the uncertainty in valuations generally independent valuer using a variety of approaches such as comparison
for products that are less standardised, less frequently traded and method and income capitalisation approach. Under the comparison
more complex in nature. In making a valuation adjustment, the Group method, fair value is estimated by considering the selling price per
and the Bank follow methodologies that consider factors such as bid- square foot of comparable investment properties sold adjusted for
offer spread, unobservable prices/inputs in the market and uncertainties location, quality and finishes of the building, design and size of the
in the assumptions/parameters. building, title conditions, market trends and time factor. Income
The Group and the Bank continuously enhance their design, validation capitalisation approach considers the capitalisation of net income of
methodologies and processes to ensure the valuations are reflective. The the investment properties such as the gross rental less current
valuation models are validated both internally and externally, with periodic maintenance expenses and outgoings. This process may consider the
reviews to ensure the model remains suitable for their intended use. relationships including yield and discount rates.

204

NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

55. FAIR VALUE MEASUREMENTS (CONT’D.)

(c) Fair value measurements and classification within the fair value hierarchy

The classification in the fair value hierarchy of the Group’s and of the Bank’s financial and non-financial assets and financial liabilities measured at fair
value is summarised in the table below:

Valuation technique using

Group Quoted Observable Unobservable Total
2021 market price inputs inputs RM’000

Non-financial assets measured at fair value: (Level 1) (Level 2) (Level 3) 975,048
Investment properties RM’000 RM’000 RM’000

– – 975,048

Financial assets measured at fair value: 4,096 13,177,770 – 13,181,866
Financial assets designated upon initial recognition
at fair value through profit or loss – 714,373 – 714,373
4,096 – – 4,096
Money market instruments – 12,463,397
Quoted securities – 12,463,397
Unquoted securities

Financial investments at fair value through profit or loss 11,902,031 15,012,817 860,645 27,775,493
Money market instruments
Quoted securities – 9,951,049 – 9,951,049
Unquoted securities 11,902,031 – – 11,902,031
860,645
– 5,061,768 5,922,413

Financial investments at fair value through other comprehensive income 5,098,873 116,868,864 426,217 122,393,954
Money market instruments
Quoted securities – 61,262,217 – 61,262,217
Unquoted securities 5,098,873 – – 5,098,873
426,217
– 55,606,647 56,032,864

Loans, advances and financing at fair value through profit or loss – – 15,491 15,491
– – 21,763,013 21,763,013
Loans, advances and financing at fair value through other
comprehensive income

Derivative assets – 12,336,825 420,650 12,757,475

Foreign exchange related contracts – 2,704,144 – 2,704,144
Interest rate related contracts – 9,917,005 – 9,917,005
Equity and commodity related contracts – 261,056 420,650
Credit related contracts – 468 – 681,706
Netting effects under MFRS 132 Amendments – (545,848) – 468

(545,848)

17,005,000 157,396,276 23,486,016 197,887,292

Financial liabilities measured at fair value: – 10,696,966 – 10,696,966
Financial liabilities at fair value through profit or loss – 40,988 – 40,988
Structured deposits – 10,655,978 –
Borrowings 10,655,978
– 12,217,525 420,650
Derivative liabilities – 2,992,049 – 12,638,175
Foreign exchange related contracts – 9,612,631 – 2,992,049
Interest rate related contracts – 157,886 9,612,631
Equity and commodity related contracts – 807 420,650 578,536
Credit related contracts – (545,848) – 807
Netting effects under MFRS 132 Amendments – (545,848)

– 22,914,491 420,650 23,335,141

MAYBANK ANNUAL REPORT 2021 205 OUR PERFORMANCE
Pg. 1-6
NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

55. FAIR VALUE MEASUREMENTS (CONT’D.) THE FINANCIALS
Pg. 7-267
(c) Fair value measurements and classification within the fair value hierarchy (cont’d.)

The classification in the fair value hierarchy of the Group’s and of the Bank’s financial and non-financial assets and financial liabilities measured at fair
value is summarised in the table below (cont’d.):

Valuation technique using

Group Quoted Observable Unobservable Total
2020 market price inputs inputs RM’000

Non-financial assets measured at fair value: (Level 1) (Level 2) (Level 3) 941,545
Investment properties RM’000 RM’000 RM’000

– – 941,545

Financial assets measured at fair value: 130,153 13,897,878 – 14,028,031
Financial assets designated upon initial recognition – 639,811 – 639,811
at fair value through profit or loss – – 130,153
Money market instruments 130,153 –
Quoted securities – 13,258,067 13,258,067
Unquoted securities 871,228
8,766,663 17,541,955 – 27,179,846
Financial investments at fair value through profit or loss – 12,217,753 – 12,217,753
Money market instruments
Quoted securities 8,766,663 – 871,228 8,766,663
Unquoted securities – 5,324,202 6,195,430
543,842
Financial investments at fair value through other comprehensive income 3,499,479 123,459,360 – 127,502,681
Money market instruments – 67,536,344 – 67,536,344
Quoted securities – 3,499,479
Unquoted securities 3,499,479 55,923,016 543,842 56,466,858
–
Loans, advances and financing at fair value through profit or loss – 170,712 170,712
–

Loans, advances and financing at fair value through other – – 16,031,857 16,031,857
comprehensive income
– 19,854,044 53,913 19,907,957
Derivative assets
Foreign exchange related contracts – 6,465,592 – 6,465,592
Interest rate related contracts – 14,654,344 – 14,654,344
Equity and commodity related contracts – 304,888 53,913
Credit related contracts – 334 – 358,801
Netting effects under MFRS 132 Amendments – (1,571,114) – 334

(1,571,114)

12,396,295 174,753,237 17,671,552 204,821,084

Financial liabilities measured at fair value: – 10,161,921 – 10,161,921
Financial liabilities at fair value through profit or loss – 10,161,921 – 10,161,921
Borrowings
– 19,097,838 53,913 19,151,751
Derivative liabilities – 6,517,696 – 6,517,696
Foreign exchange related contracts – 13,720,610 –
Interest rate related contracts – 430,625 13,720,610
Equity and commodity related contracts – 21 53,913 484,538
Credit related contracts – (1,571,114) – 21
Netting effects under MFRS 132 Amendments –
(1,571,114)

– 29,259,759 53,913 29,313,672

206

NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

55. FAIR VALUE MEASUREMENTS (CONT’D.)

(c) Fair value measurements and classification within the fair value hierarchy (cont’d.)

The classification in the fair value hierarchy of the Group’s and of the Bank’s financial and non-financial assets and financial liabilities measured at fair
value is summarised in the table below (cont’d.):

Valuation technique using

Bank Quoted Observable Unobservable Total
2021 market price inputs inputs RM’000

Financial assets measured at fair value: (Level 1) (Level 2) (Level 3)
Financial investments at fair value through profit or loss RM’000 RM’000 RM’000
Money market instruments
Quoted securities 578,310 12,725,264 700,280 14,003,854
Unquoted securities – 8,733,992 – 8,733,992
– – 578,310
Financial investments at fair value through other comprehensive income 578,310 3,991,272 4,691,552
Money market instruments – 700,280
Quoted securities 70,255,232 70,663,061
Unquoted securities 15,490 29,385,555 392,339 29,385,555
– –
Loans, advances and financing at fair value through profit or loss – – 15,490
15,490 40,869,677 41,262,016
– 392,339
– 15,491
– 15,491

Loans, advances and financing at fair value through other – – 19,301,237 19,301,237
comprehensive income
– 12,077,789 420,650 12,498,439
Derivative assets
Foreign exchange related contracts – 2,590,973 – 2,590,973
Interest rate related contracts – 10,019,308 – 10,019,308
Equity and commodity related contracts – 7,405 420,650
Credit related contracts – 468 – 428,055
Netting effects under MFRS 132 Amendments – (540,365) – 468

(540,365)

593,800 95,058,285 20,829,997 116,482,082

Financial liabilities measured at fair value: – 10,696,966 – 10,696,966
Financial liabilities at fair value through profit or loss – 40,988 – 40,988
Structured deposits – 10,655,978 –
Borrowings 10,655,978
– 11,954,006 420,650
Derivative liabilities – 2,885,298 – 12,374,656
Foreign exchange related contracts – 9,601,511 – 2,885,298
Interest rate related contracts – 6,755 9,601,511
Equity and commodity related contracts – 807 420,650 427,405
Credit related contracts – (540,365) – 807
Netting effects under MFRS 132 Amendments – (540,365)

– 22,650,972 420,650 23,071,622

MAYBANK ANNUAL REPORT 2021 207 OUR PERFORMANCE
Pg. 1-6
NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

55. FAIR VALUE MEASUREMENTS (CONT’D.) THE FINANCIALS
Pg. 7-267
(c) Fair value measurements and classification within the fair value hierarchy (cont’d.)

The classification in the fair value hierarchy of the Group’s and of the Bank’s financial and non-financial assets and financial liabilities measured at fair
value is summarised in the table below (cont’d.):

Valuation technique using

Bank Quoted Observable Unobservable Total
2020 market price inputs inputs RM’000

Financial assets measured at fair value: (Level 1) (Level 2) (Level 3)
Financial investments at fair value through profit or loss RM’000 RM’000 RM’000
Money market instruments
Quoted securities 518,705 16,988,267 682,508 18,189,480
Unquoted securities – 11,757,406 – 11,757,406
–
Financial investments at fair value through other comprehensive income 518,705 – 518,705
Money market instruments – 5,230,861 682,508 5,913,369
Quoted securities
Unquoted securities 17,836 75,004,340 511,617 75,533,793
– 31,797,338 – 31,797,338
Loans, advances and financing at fair value through profit or loss –
17,836 – 17,836
– 43,207,002 511,617 43,718,619

– – 170,712 170,712

Loans, advances and financing at fair value through other – – 13,290,590 13,290,590
comprehensive income
– 19,659,889 53,913 19,713,802
Derivative assets
Foreign exchange related contracts – 6,477,479 – 6,477,479
Interest rate related contracts – 14,603,840 – 14,603,840
Equity and commodity related contracts – 135,936 53,913
Credit related contracts – 334 – 189,849
Netting effects under MFRS 132 Amendments – (1,557,700) – 334

(1,557,700)

536,541 111,652,496 14,709,340 126,898,377

Financial liabilities measured at fair value: – 10,161,921 – 10,161,921
Financial liabilities at fair value through profit or loss – 10,161,921 – 10,161,921
Borrowings
– 18,670,480 53,913 18,724,393
Derivative liabilities – 6,371,259 – 6,371,259
Foreign exchange related contracts – 13,709,263 –
Interest rate related contracts – 147,637 13,709,263
Equity and commodity related contracts – 21 53,913 201,550
Credit related contracts – (1,557,700) – 21
Netting effects under MFRS 132 Amendments –
(1,557,700)

– 28,832,401 53,913 28,886,314

208

NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

55. FAIR VALUE MEASUREMENTS (CONT’D.)

(d) Transfers between Level 1 and Level 2 in the fair value hierarchy

The accounting policy for determining when transfers between levels of the fair value hierarchy occurred is disclosed in Note 2.3(xxii). There were no
transfers between Level 1 and Level 2 for the Group and the Bank during the financial year ended 31 December 2021.
(e) Movements of Level 3 instruments

The following tables present additional information about Level 3 financial assets and financial liabilities measured at fair value on a recurring basis:

Group At Other gains Unrealised Unrealised Purchases/ Sales Settlements Exchange At
As at 31 December 2021 1 January recognised gains/(losses) (losses)/gains Issuances/ RM’000 RM’000 differences 31 December
Financial investments at fair value in income Additions
2021 statements* recognised recognised RM’000 2021
through profit or loss RM’000 in income in other RM’000 RM’000
Unquoted securities RM’000 statements#
comprehensive
Financial investments at fair value RM’000 income
through other comprehensive income RM’000
Unquoted securities
871,228 10,029 28,665 – – (49,269) – (8) 860,645
Loans, advances and financing at fair
value through profit or loss 543,842 – – (119,255) – –– 1,630 426,217
– (176,044) 5,332 15,491
Loans, advances and financing at fair 170,712 – – – 15,491
value through other comprehensive
income 16,031,857 – – 25,845 10,914,879 – (5,464,275) 254,707 21,763,013

Derivative assets 53,913 906,975 193,932 – 258,058 (992,228) – – 420,650
Equity and commodity related contracts 17,671,552 917,004 222,597 (93,410) 11,188,428 (1,041,497) (5,640,319) 261,661 23,486,016

Total Level 3 financial assets

Derivative liabilities (53,913) 918,875 (193,932) – (258,058) (833,622) – – (420,650)
Equity and commodity related contracts (53,913) 918,875 (193,932) – (258,058) (833,622) – – (420,650)

Total Level 3 financial liabilities 17,617,639 1,835,879 28,665 (93,410) 10,930,370 (1,875,119) (5,640,319) 261,661 23,065,366

Total net Level 3 financial
assets/(liabilities)

* Included within ‘Other operating income’, ‘(Allowances for)/writeback of impairment losses on financial investments’ and ‘Income from Islamic Banking Scheme operations’.
# Included within ‘Other operating income’ and ‘Income from Islamic Banking Scheme operations’.

MAYBANK ANNUAL REPORT 2021 209 OUR PERFORMANCE
Pg. 1-6
NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

55. FAIR VALUE MEASUREMENTS (CONT’D.) THE FINANCIALS
Pg. 7-267
(e) Movements of Level 3 instruments (cont’d.)

The following tables present additional information about Level 3 financial assets and financial liabilities measured at fair value on a recurring basis
(cont’d.):

Group At Other gains Unrealised Unrealised Purchases/ Sales Settlements Exchange At
As at 31 December 2020 1 January recognised gains gains Issuances/ RM’000 RM’000 differences 31 December
Financial investments at fair value in income Additions
2020 statements* recognised recognised RM’000 2020
through profit or loss RM’000 in income in other RM’000 RM’000
Unquoted securities RM’000 statements#
comprehensive –
Financial investments at fair value RM’000 income
through other comprehensive income RM’000 –
Unquoted securities 155,483
807,125 3,900 64,870 – (4,680) – 13 871,228
Loans, advances and financing at fair 6,472,615
value through profit or loss 463,260 – – 80,671 36,870 –– (89) 543,842
401,703 – (382,457) (4,496) 170,712
Loans, advances and financing at fair – 479 – 6,664,968
value through other comprehensive
income 11,821,285 – – 212,883 – (2,461,126) (13,800) 16,031,857

Derivative assets 83,393 456,777 77,240 – – (600,367) – 53,913
Equity and commodity related contracts 13,576,766 460,677 142,589 293,554 (4,680) (3,443,950) (18,372) 17,671,552

Total Level 3 financial assets

Derivative liabilities (83,393) 457,440 77,240 – (36,870) – (468,330) – (53,913)
Equity and commodity related contracts (83,393) 457,440 77,240 – (36,870) – (468,330) – (53,913)

Total Level 3 financial liabilities 13,493,373 918,117 219,829 293,554 6,628,098 (4,680) (3,912,280) (18,372) 17,617,639

Total net Level 3 financial
assets/(liabilities)

* Included within ‘Other operating income’, ‘(Allowances for)/writeback of impairment losses on financial investments’ and ‘Income from Islamic Banking Scheme operations’.
# Included within ‘Other operating income’ and ‘Income from Islamic Banking Scheme operations’.

210

NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

55. FAIR VALUE MEASUREMENTS (CONT’D.)

(e) Movements of Level 3 instruments (cont’d.)

The following tables present additional information about Level 3 financial assets and financial liabilities measured at fair value on a recurring basis
(cont’d.):

Bank At Other gains Unrealised Unrealised Purchases/ Sales Settlements Exchange At
As at 31 December 2021 1 January recognised gains/(losses) (losses)/gains Issuances/ RM’000 RM’000 differences 31 December
Financial investments at fair value in income Additions
2021 statements* recognised recognised RM’000 2021
through profit or loss RM’000 in income in other RM’000 RM’000
Unquoted securities RM’000 statements#
comprehensive
Financial investments at fair value RM’000 income
through other comprehensive income RM’000
Unquoted securities
682,508 – 17,772 – – – – – 700,280
Loans, advances and financing at fair
value through profit or loss 511,617 – – (119,278) – –– – 392,339
– (176,044) 5,332 15,491
Loans, advances and financing at fair 170,712 – – – 15,491
value through other comprehensive
income 13,290,590 – – 25,846 10,849,203 – (5,114,925) 250,523 19,301,237

Derivative assets 53,913 906,975 193,932 – 258,058 (992,228) – – 420,650
Equity and commodity related contracts 14,709,340 906,975 211,704 (93,432) 11,122,752 (992,228) (5,290,969) 255,855 20,829,997

Total Level 3 financial assets

Derivative liabilities (53,913) 918,875 (193,932) – (258,058) (833,622) – – (420,650)
Equity and commodity related contracts (53,913) 918,875 (193,932) – (258,058) (833,622) – – (420,650)

Total Level 3 financial liabilities 14,655,427 1,825,850 17,772 (93,432) 10,864,694 (1,825,850) (5,290,969) 255,855 20,409,347

Total net Level 3 financial
assets/(liabilities)

* Included within ‘Other operating income’ and ‘(Allowances for)/writeback of impairment losses on financial investments’.
# Included within ‘Other operating income’.

MAYBANK ANNUAL REPORT 2021 211 OUR PERFORMANCE
Pg. 1-6
NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

55. FAIR VALUE MEASUREMENTS (CONT’D.) THE FINANCIALS
Pg. 7-267
(e) Movements of Level 3 instruments (cont’d.)

The following tables present additional information about Level 3 financial assets and financial liabilities measured at fair value on a recurring basis
(cont’d.):

Bank At Other gains Unrealised Unrealised Purchases/ Sales Settlements Exchange At
As at 31 December 2020 1 January recognised gains gains Issuances/ RM’000 RM’000 differences 31 December
Financial investments at fair value in income Additions
2020 statements* recognised recognised RM’000 2020
through profit or loss RM’000 in income in other RM’000 RM’000
Unquoted securities RM’000 statements#
comprehensive –
Financial investments at fair value RM’000 income
through other comprehensive income RM’000 –
Unquoted securities 155,483
622,176 – 60,332 – – – – 682,508
Loans, advances and financing at fair 4,125,357
value through profit or loss 429,654 – – 81,963 36,870 –– – 511,617
401,703 – (382,457) (4,496) 170,712
Loans, advances and financing at fair – 479 – 4,317,710
value through other comprehensive
income 11,380,901 – – 178,658 – (2,380,526) (13,800) 13,290,590

Derivative assets 83,393 456,777 77,240 – – (600,367) – 53,913
Equity and commodity related contracts 12,917,827 456,777 138,051 260,621 – (3,363,350) (18,296) 14,709,340

Total Level 3 financial assets

Derivative liabilities (83,393) 457,440 77,240 – (36,870) – (468,330) – (53,913)
Equity and commodity related contracts (83,393) 457,440 77,240 – (36,870) – (468,330) – (53,913)

Total Level 3 financial liabilities 12,834,434 914,217 215,291 260,621 4,280,840 – (3,831,680) (18,296) 14,655,427

Total net Level 3 financial
assets/(liabilities)

* Included within ‘Other operating income’ and ‘(Allowances for)/writeback of impairment losses on financial investments’.
# Included within ‘Other operating income’.

There were no transfers into or out of Level 3 for the Group and the Bank during the financial year ended 31 December 2021.

(f) Sensitivity of fair value measurements to changes in unobservable input assumptions

Changing one or more of the inputs to reasonable alternative assumptions would not change the value significantly for the financial assets and financial
liabilities in Level 3 of the fair value hierarchy.

Recent sale transactions transacted in the real estate market would result in a significant change of estimated fair value for investment properties.

212

NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

55. FAIR VALUE MEASUREMENTS (CONT’D.)

(g) Financial instruments not measured at fair value

The on-balance sheet financial assets and financial liabilities of the Group and of the Bank whose fair values are required to be disclosed in accordance
with MFRS 132 comprise all their assets and liabilities with the exception of investments in subsidiaries, interest in associates and joint ventures, property,
plant and equipment and provision for current and deferred taxation.

For loans, advances and financing to customers, where such market prices are not available, various methodologies have been used to estimate the
approximate fair values of such instruments. These methodologies are significantly affected by the assumptions used and judgements made regarding
risk characteristics of various financial instruments, discount rates, estimates of future cash flows, future expected loss experience and other factors.
Changes in the assumptions could significantly affect these estimates and the resulting fair value estimates. Therefore, for a significant portion of the
Group’s and of the Bank’s financial instruments, including loans, advances and financing to customers, their respective fair value estimates do not purport
to represent, nor should they be construed to represent, the amounts that the Group and the Bank could realise in a sale transaction as at the reporting
date. The fair value information presented herein should also in no way be construed as representative of the underlying value of the Group and of the
Bank as a going concern.

The estimated fair values of those on-balance sheet financial assets and financial liabilities as at the reporting date approximate their carrying amounts
as shown in the statement of financial position, except for the financial assets and financial liabilities as disclosed below.

The table below analyses financial instruments not carried at fair value for which fair value is disclosed, together with carrying amount shown in the
statement of financial position:

Group Level 1 Level 2 Level 3 Total Carrying
RM’000 RM’000 RM’000 fair value amount
2021 RM’000
Financial assets RM’000
Deposits and placements with financial institutions
Financial investments at amortised cost – 16,037,048 – 16,037,048 16,037,048
Loans, advances and financing to financial institutions
Loans, advances and financing to customers – 50,641,928 9,578,313 60,220,241 60,532,190

– – 939,410 939,410 939,410

– 204,501,309 336,719,198 541,220,507 519,169,975

Financial liabilities – 589,476,230 – 589,476,230 588,967,633
Customers' funding: – 28,721,089 – 28,721,089 28,720,799
– Deposits from customers – 36,638,430 – 36,638,430 36,583,073
– Investment accounts of customers^ – 30,262,626 5,749,341 36,011,967 35,548,352
Deposits and placements from financial institutions – 10,106,773 – 10,106,773 10,239,277
Borrowings – 2,823,204 – 2,823,204 2,827,832
Subordinated obligations
Capital securities

2020 – 10,128,931 – 10,128,931 10,128,931
Financial assets
Deposits and placements with financial institutions – 44,698,315 3,561,137 48,259,452 46,475,916
Financial investments at amortised cost
Loans, advances and financing to financial institutions – – 899,986 899,986 899,986
Loans, advances and financing to customers
– 186,470,987 326,093,040 512,564,027 495,107,538

Financial liabilities – 558,089,672 – 558,089,672 556,349,372
Customers' funding: – 23,840,946 – 23,840,946 23,840,796
– Deposits from customers – 37,963,439 – 37,963,439 37,878,866
– Investment accounts of customers^ – 35,387,434 3,229,184 38,616,618 38,097,224
Deposits and placements from financial institutions – 9,159,574 – 9,159,574 8,967,831
Borrowings – 2,900,657 – 2,900,657 2,827,793
Subordinated obligations
Capital securities

^ Investment accounts of customers are used to fund financing and advances as disclosed in Note 64(l).

MAYBANK ANNUAL REPORT 2021 213 OUR PERFORMANCE
Pg. 1-6
NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

55. FAIR VALUE MEASUREMENTS (CONT’D.) THE FINANCIALS
Pg. 7-267
(g) Financial instruments not measured at fair value (cont’d.)

The table below analyses financial instruments not carried at fair value for which fair value is disclosed, together with carrying amount shown in the
statement of financial position (cont’d.):

Bank Level 1 Level 2 Level 3 Total Carrying
RM’000 RM’000 RM’000 fair value amount
2021 RM’000
Financial assets RM’000
Deposits and placements with financial institutions
Financial investments at amortised cost – 31,482,634 – 31,482,634 31,482,634
Loans, advances and financing to financial institutions – 34,377,146 7,263,904 41,641,050 41,574,896
Loans, advances and financing to customers –– 30,263,861 30,263,861 30,263,861
– 106,141,064 92,331,411 198,472,475 190,542,678

Financial liabilities – 276,697,899 – 276,697,899 276,558,866
Deposits from customers – 41,618,235 – 41,618,235 41,567,510
Deposits and placements from financial institutions – 28,706,858 – 28,706,858 28,289,884
Borrowings – 9,680,455 – 9,680,455 9,827,722
Subordinated obligations – 2,823,204 – 2,823,204 2,827,832
Capital securities

2020 – 15,268,348 – 15,268,348 15,268,348
Financial assets
Deposits and placements with financial institutions – 32,821,136 8,445,861 41,266,997 39,856,983
Financial investments at amortised cost
Loans, advances and financing to financial institutions – – 30,042,986 30,042,986 30,042,986
Loans, advances and financing to customers
– 97,779,797 95,878,217 193,658,014 186,420,174

Financial liabilities – 251,242,767 – 251,242,767 250,025,335
Deposits from customers – 34,794,264 – 34,794,264 34,720,115
Deposits and placements from financial institutions – 33,579,333 – 33,579,333 33,134,255
Borrowings – 8,974,959 – 8,974,959 8,808,639
Subordinated obligations – 2,900,657 – 2,900,657 2,827,793
Capital securities

The following methods and assumptions are used to estimate the fair values of the following classes of financial instruments:

(i) Financial investments at amortised cost

Fair values of securities that are actively traded is determined by quoted bid prices. For non-actively traded securities, independent broker quotations
are obtained. Fair values of equity securities are estimated using a number of methods, including earnings multiples and discounted cash flows
analysis. Where discounted cash flows technique is used, the estimated future cash flows are discounted using applicable prevailing market or
indicative rates of similar instruments at the reporting date.

(ii) Loans, advances and financing

The fair values of variable rate loans are estimated to approximate their carrying amount. For fixed rate loans and Islamic financing, the fair values
are estimated based on expected future cash flows of contractual instalment payments, discounted at applicable and prevailing rates at reporting
date offered for similar facilities to new borrowers with similar credit profiles. In respect of impaired loans, the fair values are deemed to approximate
the carrying amount which are net of impairment allowances.

(iii) Deposits from customers, deposits and placements with/from financial institutions and investment accounts of customers

The fair values of deposits payable on demand and deposits and placements with maturities of less than one year approximate their carrying amount
due to the relatively short maturity of these instruments. The fair values of fixed deposits and placements with remaining maturities of more than
one year are estimated based on discounted cash flows using applicable rates currently offered for deposits and placements with similar remaining
maturities.

(iv) Borrowings, subordinated obligations and capital securities

The fair values of borrowings, subordinated obligations and capital securities are estimated by discounting the expected future cash flows using the
applicable prevailing interest rates for similar instruments as at reporting date.

214

NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

56. OFFSETTING OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES

Financial assets and financial liabilities are offset and the net amounts are reported in the statement of financial position when there is a legally enforceable
right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously.

Amounts which are not offset in the statement of financial position are related to:

(i) The counterparties’ offsetting exposures with the Group and the Bank where the right to set-off is only enforceable in the event of default, insolvency
or bankruptcy of the counterparties; and

(ii) Cash and securities that are received from or pledged with counterparties.

Financial assets and financial liabilities subject to offsetting, enforceable master netting arrangements and similar agreements are as follows:

Gross amount Gross amount Amount Amount not offset in the
of recognised offset in the presented in statement of financial position
financial assets/ statement of the statement
Group financial Financial Financial Net
financial position of financial instruments collateral amount
liabilities RM’000 position received/ RM’000
RM’000 RM’000
RM’000 pledged 4,079,949
RM’000 2,061,444

2021 13,303,323 (545,848) 12,757,475 (7,768,151) (909,375)
10,984,403 (8,922,959) 2,061,444 – –
Financial assets

Derivative assets
Other assets:

Amount due from brokers and clients (Note 15)

Financial liabilities 13,184,023 (545,848) 12,638,175 (7,721,054) (1,990,691) 2,926,430
Derivative liabilities 15,537,564 (8,922,959) 6,614,605 – – 6,614,605
Other liabilities:

Amount due to brokers and clients (Note 27)

2020 21,479,071 (1,571,114) 19,907,957 (10,718,537) (1,488,905) 7,700,515
7,886,070 (4,943,062) 2,943,008 – – 2,943,008
Financial assets

Derivative assets
Other assets:

Amount due from brokers and clients (Note 15)

Financial liabilities 20,722,865 (1,571,114) 19,151,751 (10,625,844) (3,158,327) 5,367,580
Derivative liabilities 9,861,899 (4,943,062) 4,918,837 – – 4,918,837
Other liabilities:

Amount due to brokers and clients (Note 27)

Gross amount Gross amount Amount Amount not offset in the
of recognised offset in the presented in statement of financial position
financial assets/ statement of the statement
Bank financial Financial Financial Net
financial position of financial instruments collateral amount
2021 liabilities RM’000 position received/ RM’000
Financial assets RM’000 RM’000
Derivative assets RM’000 pledged
RM’000
Financial liabilities
Derivative liabilities 13,038,804 (540,365) 12,498,439 (7,582,576) (795,265) 4,120,598
12,915,021
2020 (540,365) 12,374,656 (7,582,576) (1,990,691) 2,801,389
Financial assets
Derivative assets 21,271,502 (1,557,700) 19,713,802 (10,144,636) (1,390,485) 8,178,681

Financial liabilities 20,282,093 (1,557,700) 18,724,393 (10,144,636) (3,158,327) 5,421,430
Derivative liabilities

MAYBANK ANNUAL REPORT 2021 215 OUR PERFORMANCE
Pg. 1-6
NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

57. CAPITAL AND OTHER COMMITMENTS Bank THE FINANCIALS
2021 Pg. 7-267
Capital expenditure approved by directors but not provided for in the financial statements amounting to: RM’000
2020 2020
Group RM’000 36,683 RM’000
2021 134,670
RM’000 111,644 171,353 28,516
420,041 134,753
Approved and contracted for 180,477 531,685 163,269
Approved but not contracted for 421,144

601,621

58. CAPITAL MANAGEMENT of 8.0%. The Framework also provides guidance on additional capital buffer
requirements which comprises Capital Conservation Buffer of 2.5% of total
The Group’s approach to capital management is driven by its strategic RWA and Countercyclical Capital Buffer ranging between 0% – 2.5% of
objectives and takes into account all relevant regulatory, economic and total RWA.
commercial environments in which the Group operates. The Group regards
having a strong capital position as essential to the Group’s business strategy BNM had on 5 February 2020 issued a Policy document on Domestic
and competitive position. As such, the Board and senior management take Systemically Important Banks (“D-SIB”) Framework and identified Maybank
into account implications on the Group’s capital position prior to implementing as one of the banks categorised as a D-SIB. Under the D-SIB framework,
major business decisions in order to preserve the Group’s overall capital Maybank is categorised under Bucket 2 of the Higher Loss Absorbency
strength. (“HLA”) requirements wherein Maybank is required to maintain an additional
Common Equity Tier 1 Ratio of 1.0% on top of the regulatory minimum
Effective capital management is fundamental to the sustainability of the with effect from 31 January 2021.
Group. The Group proactively manages its capital to meet the expectations
of key stakeholders such as regulators, shareholders, investors, rating agencies In the Group’s pursuit of an efficient and healthy capital position, the Group
and analysts whilst ensuring that the returns on capital commensurate with had implemented a recurrent and optional Dividend Reinvestment Plan
risks undertaken by respective business units. The objectives are to: (“DRP”) that allows the shareholders of the Group to reinvest electable
portions of their dividends into new ordinary shares in the Bank. The DRP
• Maintain capital ratios at levels sufficiently above the regulatory minimum is part of the Group’s strategy to preserve equity capital to meet the
requirements; regulatory requirement as well as to grow its business whilst providing
healthy dividend income to shareholders. Details of the DRP is disclosed in
• Support the Group’s strong credit ratings from local and international Note 33(b) and dividend payout is disclosed in Note 52.
rating agencies;
59. INTERNAL CAPITAL ADEQUACY ASSESSMENT PROCESS
• Deploy capital efficiently to businesses and optimise returns on capital; (“ICAAP”)

• Remain flexible to capitalise on future opportunities; and (a) General

• Build and invest in businesses, even in a stressed environment. The Group’s overall capital adequacy in relation to its risk profile is
assessed through a process articulated in the Maybank Group ICAAP
The quality and composition of capital are key factors in the Board and Policy (“ICAAP Policy”). The ICAAP Policy is designed to ensure that
senior management’s evaluation of the Group’s capital adequacy position. adequate levels of capital, including capital buffers, are held to support
The Group places strong emphasis on the quality of its capital and, accordingly, the Group’s current and projected demand for capital under existing
holds a significant amount of its capital in the form of common equity and stressed conditions. Regular ICAAP reports are submitted to the
which is permanent and has the highest loss absorption capability on a Group Executive Risk Committee (“GERC”) on quarterly basis and Risk
going concern basis. Management Committee (“RMC”) on half-yearly basis for comprehensive
review of all material risks faced by the Group and assessment of the
The Group’s capital management is guided by the Group Capital Management adequacy of capital to support them. The ICAAP closely integrates the
Framework to ensure that capital is managed on an integrated approach risk and capital planning and management processes.
and ensure a strong and flexible financial position to manage through
economic cycles across the Group. Since March 2013, the Group has prepared a Board-approved ICAAP
document to fulfil the requirements under the BNM Pillar 2 guideline,
The Group’s capital management is also supplemented by the Group Annual which came into effect on 31 March 2013. The document included an
Capital and Funding Plan to facilitate efficient capital levels and utilisation overview of ICAAP, current and projected financial and capital position,
across the Group. The plan is updated on an annual basis covering at least ICAAP governance, risk assessment models and processes, risk appetite
a three years horizon and reviewed and approved by the Board for and capital management, stress testing and capital planning and the
implementation at the beginning of each financial year in order to keep use of ICAAP. Annually, the Group submits an update of the material
abreast with the latest development on capital management and also to changes made to the document to BNM.
ensure effective and timely execution of the plans contained therein.

Pursuant to Bank Negara Malaysia’s (“BNM”) Capital Adequacy Framework
(Capital Components) (“Framework”) issued on 9 December 2020, all financial
institutions shall hold and maintain at all times, the minimum Common
Equity Tier 1 Ratio of 4.5%, Tier 1 Ratio of 6.0%, and Total Capital Ratio

216

NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

59. INTERNAL CAPITAL ADEQUACY ASSESSMENT PROCESS (d) Regular and robust stress testing
(“ICAAP”) (CONT’D.)
The Group’s stress testing programme is embedded in the risk and
(b) Comprehensive risk assessment under ICAAP policy capital management process of the Group and it is a key function of
the capital planning and business planning processes. The programme
Under the Group’s ICAAP methodology, the following risk types are serves as a forward-looking risk and capital management tool to
identified and measured: understand the risk profile under exceptional but plausible and worst
case scenarios. Such scenarios may arise mainly from economic, political
• Risks captured under Pillar 1 (credit risk, market risk and operational and environmental factors.
risk);
Under Maybank Group’s Stress Testing (“GST”) Policy, the potential
• Risks not fully captured under Pillar 1 (e.g. model risk); unfavourable effects of stress scenarios on the Group’s profitability,
asset quality, risk-weighted assets, capital adequacy, liquidity and ability
• Risks not specifically addressed under Pillar 1 (e.g. interest rate risk/ to comply with the risk appetites set, are considered.
rate of return risk (both banking and trading book), liquidity risk,
business and strategic risk, reputational risk, credit concentration Specifically, the stress test programme is designed to:
risk, IT risk, cyber risk, regulatory risk, country risk, compliance risk,
profitability risk, Shariah non-compliance risk, information risk, • Highlight the dynamics of stress events and their potential implications
conduct risk, workforce risk and data quality risk amongst others); on the Group’s trading and banking book exposures, liquidity positions
and and likely reputational impacts;

• External factors, including changes in economic environment i.e. • Proactively identify key strategies to mitigate the effects of stress
emerging risk, regulations and accounting rules. events;

A key process emplaced within the Group provides for the identification • Produce stress results as inputs into the Group Capital and Funding
of material risks that may arise through the conduct of group-wide Plan in determining capital adequacy and capital targets;
risk landscape survey on annual basis. Material risks are defined as
“risks which would materially impact the financial performance • Produce scenario analysis for the Group’s recovery planning to
(profitability), capital adequacy, asset quality and/or reputation of the evaluate overall recovery capacity, identify preferred recovery strategies
Group should the risk occur”. and ultimately link to risk appetite setting; and

In the ICAAP Policy, the Material Risk Assessment Process (“MRAP”) • Provide insights on risk return profile by entity and by line of business
is designed to identify key risks from the Group’s Risk Universe. under stress.
Annually, a group-wide risk landscape survey is carried out as part of
a robust risk management approach to identify and prioritise the key There are several types of stress tests conducted across the Group:
risks based on potential impact of the risks on earnings and capital
facing the Group. The survey results provide a synthesis of perceptions • Group stress tests – Using a common scenario approved by RMC
of current and future market outlook, based on perspectives of the of which the results are submitted to BNM. It also includes periodic
key stakeholders across retail, commercial, investment banking and industry-wide stress tests organised by BNM where the scenarios
insurance operations across the Group’s major entities. In addition, are specified by the Central Bank.
the outcomes of the survey assist in identifying the major risk scenarios
over the near term time horizon. • Localised stress tests – Limited scope stress tests undertaken at
portfolio, branch/sector or entity levels based on scenarios relevant
Risks deemed “material” are reported to the Group ERC and RMC via to specific localities.
the ICAAP report. For each material risk identified, the Group will
ensure appropriate risk mitigation is in place to address these key • Ad-hoc stress tests – Stress tests conducted in response to emerging
risks, which include regular risk monitoring through Group Chief Risk risk events.
Officer (“GCRO”) letter reporting, stress testing, risk mitigation, capital
planning and crisis management strategies. • Reverse stress tests – Identification of a range of adverse scenarios
which could threaten the viability of Maybank.
(c) Assessment of Pillar 1 and Pillar 2 risks
• Rapid exposure drills – Assessment of direct impact or potential
In line with industry best practices, the Group quantifies its risks using contagion effect including upside and downside risks.
methodologies that have been reasonably tested and determined to
be fit-for-purpose. • Scenario analysis for Maybank Group Recovery Plan – Requirements
according to BNM’s Recovery Planning.
Where risks may not be easily quantified due to the lack of commonly
accepted risk measurement techniques, expert judgement is used to Stress test themes reviewed by the Stress Test Working Group in the
determine the size and materiality of risk. The Group has also past include COVID-19 Pandemic, US-China trade war, Eurozone
incorporated forward-looking element to strengthen the Pillar 2 scorecard financial crisis, tightening of monetary policies, global economic turmoil,
assessment. The Group’s ICAAP would then focus on the qualitative impact on liquidity risk due to cyberattack, digital disruption, impact
controls in managing such material non-quantifiable risks. These of external geopolitical events on ASEAN and Asia, impact of weakening
qualitative measures include the following: Malaysian ringgit and higher bond yields, Post-Brexit risk on ASEAN
economies, the Perfect Storm: Impact of low oil price, weak currencies
• Adequate governance processes; and slower Chinese GDP growth on ASEAN economies, Federal Reserve
rate hike, idiosyncratic event’s implication to the Group, oil price
• Adequate systems, procedures and internal controls; decline, intensified capital outflows from emerging markets including
ASEAN, rising inflation and interest rate hikes in ASEAN, impact of
• Effective risk mitigation strategies; and Federal Reserve Quantitative Easing tapering, sovereign rating
downgrades, slowing Chinese economy, a repeat of Asian Financial
• Regular monitoring and reporting. Crisis, US dollar depreciation, pandemic flu, asset price collapse, a
global double-dip recession scenario, Japan disasters, crude oil price
hike, the Eurozone and US debt crises, amongst others.

MAYBANK ANNUAL REPORT 2021 217 OUR PERFORMANCE
Pg. 1-6
NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

59. INTERNAL CAPITAL ADEQUACY ASSESSMENT PROCESS (iii) For PT Bank Maybank Indonesia Tbk, the computation of capital THE FINANCIALS
(“ICAAP”) (CONT’D.) adequacy ratios are in accordance with local requirements, which Pg. 7-267
is based on the Basel Il capital accord. The total RWA are computed
(d) Regular and robust stress testing (cont’d.) based on the following approaches:

The Stress Test Working Group, which comprises of business, countries (A) Credit risk under Standardised Approach;
and risk management teams, tables the stress test reports to the senior
management and Board committees and discusses the results with the (B) Market risk under Standardised Approach; and
regulators on a regular basis.
(C) Operational risk under Basic Indicator Approach.
60. CAPITAL ADEQUACY
The minimum regulatory capital adequacy requirement for PT
(a) Compliance and application of capital adequacy ratios Bank Maybank Indonesia Tbk for the financial year ended 31
December 2021 is 9% up to less than 10% (2020: 9% up to less
The capital adequacy ratios of the Group and of the Bank are computed than 10%) of total RWA.
in accordance with BNM’s Capital Adequacy Framework (Capital
Components) issued on 9 December 2020 and Capital Adequacy (iv) For Maybank Singapore Limited, the computation of capital
Framework (Basel II – Risk-Weighted Assets) issued on 3 May 2019. adequacy ratios are based on MAS Notice 637 dated 14 September
The total RWA are computed based on the following approaches: 2012 (last revised on 2 December 2021) issued by the Monetary
Authority of Singapore (“MAS”). The total RWA are computed
(A) Credit risk under Internal Ratings-Based Approach and Standardised based on the following approaches:
Approach;
(A) Credit risk under Internal Ratings-Based Approach and
(B) Market risk under Standardised Approach; and Standardised Approach;

(C) Operational risk under Basic Indicator Approach. (B) Market risk under Standardised Approach;

On an entity level basis, the computation of capital adequacy ratios (C) Operational risk under Basic Indicator Approach; and
of the subsidiaries of the Group are as follows:
(D) Capital floor adjustment to RWA under MAS Notice 637.
(i) For Maybank Islamic Berhad, the computation of capital adequacy
ratios are based on BNM’s Capital Adequacy Framework for Islamic The minimum regulatory capital adequacy requirements for CET1,
Banks (Capital Components) issued on 9 December 2020 and Tier 1 and Total Capital are 6.5%, 8.0% and 10.0% of total RWA
Capital Adequacy Framework for Islamic Banks (Risk-Weighted for the financial year ended 31 December 2021 (2020: 6.5%,
Assets) issued on 3 May 2019. The total RWA are computed 8.0% and 10.0% of total RWA).
based on the following approaches:
(b) The capital adequacy ratios of the Group and of the Bank
(A) Credit risk under Internal Ratings-Based Approach and
Standardised Approach; With effect from 30 June 2013, the amount of declared dividend to
be deducted in the calculation of CET1 Capital under a DRP shall be
(B) Market risk under Standardised Approach; and determined in accordance with BNM’s Implementation Guidance on
Capital Adequacy Framework (Capital Components) (“Implementation
(C) Operational risk under Basic Indicator Approach. Guidance”) issued on 8 May 2013. Under the said Implementation
Guidance, where a portion of the dividend may be reinvested under
The minimum regulatory capital adequacy requirements for CET1, a DRP (the electable portion), the amount of declared dividend to be
Tier 1 and Total Capital are 4.5%, 6.0% and 8.0% of total RWA deducted in the calculation of CET1 Capital may be reduced as follows:
for the financial year ended 31 December 2021 (2020: 4.5%,
6.0% and 8.0% of total RWA). (i) where an irrevocable written undertaking from shareholder has
been obtained to reinvest the electable portion of the dividend;
(ii) For Maybank Investment Bank Berhad, the computation of capital or
adequacy ratios are based on BNM’s Capital Adequacy Framework
(Capital Components) issued on 9 December 2020 and Capital (ii) where there is no irrevocable written undertaking provided, the
Adequacy Framework (Basel II – Risk-Weighted Assets) issued on average of the preceding 3-year take-up rates subject to the
3 May 2019. The total RWA are computed based on the following amount being not more than 50% of the total electable portion
approaches: of the dividend.

(A) Credit risk under Standardised Approach; In respect of the financial year ended 31 December 2021, the Bank
has declared a single-tier second interim dividend of 30.0 sen per
(B) Market risk under Standardised Approach; and ordinary share subsequent to financial year end, which consists of a
cash portion of 22.5 sen and an electable portion of 7.5 sen per
(C) Operational risk under Basic Indicator Approach. ordinary share. The electable portion can be elected to be reinvested
by shareholders in new Maybank shares in accordance with the DRP.
The minimum regulatory capital adequacy requirements for CET1,
Tier 1 and Total Capital are 4.5%, 6.0% and 8.0% of total RWA In arriving at the capital adequacy ratios for the financial year ended
for the financial year ended 31 December 2021 (2020: 4.5%, 31 December 2021, the second interim dividend has not been deducted
6.0% and 8.0% of total RWA). from the calculation of CET1 Capital.

218

NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

60. CAPITAL ADEQUACY (CONT’D.) Group 2020 Bank 2020

(b) The capital adequacy ratios of the Group and of the Bank (cont’d.) 2021 15.313% 2021 15.581%
The capital adequacy ratios of the Group and of the Bank are as follows: 16.026% 16.343%
16.090% 18.683% 15.462% 18.639%
CET1 Capital Ratio 16.810% 16.223%
Tier 1 Capital Ratio 19.518% 18.785%
Total Capital Ratio

(c) Components of capital: Group 2020 Bank 2020
RM’000 RM’000
CET1 Capital 2021 2021
Share capital RM’000 RM’000
Retained profits1
Other reserves1 53,156,473 48,280,355 53,156,473 48,280,355
Qualifying non-controlling interests 22,116,695 22,447,018 15,237,128 16,811,402

CET1 Capital before regulatory adjustments 2,375,413 5,473,660 4,144,604 6,201,908
Less: Regulatory adjustments applied on CET1 Capital 114,198 115,096 – –
Deferred tax assets
Goodwill 77,762,779 76,316,129 72,538,205 71,293,665
Other intangibles (12,682,495) (14,517,207) (35,974,034) (34,477,624)
G ain on financial instruments classified as ‘fair value through other
(1,411,183) (722,391) (468,101) –
comprehensive income’ (5,613,782) (5,536,309) (81,015) (81,015)
Regulatory reserve (306,645)
I nvestment in ordinary shares of unconsolidated financial and insurance/ (894,736) (955,439) (325,666)
(1,279,711)
takaful entities2 (371,487) (1,922,600) (301,887) (1,495,500)
(1,315,261) (2,115,455) (1,180,201)
(31,314,753)
(3,076,046) (3,265,013) (33,617,164)

Total CET1 Capital 65,080,284 61,798,922 36,564,171 36,816,041

Additional Tier 1 Capital 2,800,000 2,800,000 2,800,000 2,800,000
Capital securities 113,077 78,005 – –
Qualifying CET1 and Additional Tier 1 capital instruments held by third parties
Less: I nvestment in capital instruments of unconsolidated financial and insurance/ – – (1,000,000) (1,000,000)
67,993,361 64,676,927 38,364,171 38,616,041
takaful entities

Total Tier 1 Capital

Tier 2 Capital 9,700,000 8,707,823 9,700,000 8,707,823
Subordinated obligations 41,180 41,209 – –
Qualifying CET1, Additional Tier 1 and Tier 2 Capital instruments held by third parties
General provisions3 239,683 332,053 28,571 69,408
Surplus of total eligible provision over total expected loss 1,663,655 1,640,773 1,025,761 989,825
Less: I nvestment in capital instruments of unconsolidated financial and insurance/
(691,000) – (4,696,676) (4,341,683)
takaful entities
10,953,518 10,721,858 6,057,656 5,425,373
Total Tier 2 Capital
78,946,879 75,398,785 44,421,827 44,041,414
Total Capital

1 For the Group, the amount excludes retained profits and other reserves from insurance and takaful business. For the Bank, the amount includes retained profits and other

reserves of Maybank International (L) Ltd.
2 For the Bank, the regulatory adjustment includes cost of investment in subsidiaries and associates, except for: (i) Myfin Berhad of RM18,994,000 as its business, assets

and liabilities have been transferred to the Bank; (ii) Maybank International (L) Ltd. of RM10,289,000 and (iii) Maybank Agro Fund Sdn. Bhd. of RM57,000 as its assets

are included in the Bank’s RWA. For the Group, the regulatory adjustment includes carrying amount of associates and investment in insurance and takaful entities.
3 Refers to loss allowances measured at an amount to 12-month and lifetime expected credit losses and regulatory reserve, to the extent they are ascribed to non-credit

impaired exposures, determined under Standardised Approach for credit risk.

The capital adequacy ratios of the Group are derived from consolidated balances of the Bank and its subsidiaries, excluding the investments in insurance
and takaful entities and associates.

The capital adequacy ratios of the Bank are derived from the Bank and its wholly-owned offshore banking subsidiary, Maybank International (L) Ltd.,
excluding the investments in subsidiaries and associates (except for Myfin Berhad, Maybank International (L) Ltd. and Maybank Agro Fund Sdn. Bhd. as
disclosed above).

MAYBANK ANNUAL REPORT 2021 219 OUR PERFORMANCE
Pg. 1-6
NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

60. CAPITAL ADEQUACY (CONT’D.) THE FINANCIALS
Pg. 7-267
(d) The breakdown of RWA by each major risk categories for the Group and the Bank are as follows:

Group Bank

2021 2020 2021 2020
RM’000 RM’000 RM’000 RM’000

Standardised Approach exposure 52,579,597 53,316,271 21,873,056 23,834,870
Internal Ratings-Based Approach exposure after scaling factor 277,275,891 273,462,139 170,960,253 164,970,850

Total RWA for credit risk 329,855,488 326,778,410 192,833,309 188,805,720
Total RWA for market risk 30,188,261 33,242,608 22,637,025 25,137,353
Total RWA for operational risk 44,431,300 43,557,083 21,010,913 22,345,775

Total RWA 404,475,049 403,578,101 236,481,247 236,288,848

(e) The capital adequacy ratios and RWA of subsidiaries of the Bank are as follows:
(i) Capital adequacy ratios

Maybank Maybank PT Bank Maybank
Islamic Investment Maybank Singapore
Berhad Bank Berhad Indonesia
Limited
2021 15.981% 26.457% Tbk
CET1 Capital Ratio 17.173% 26.457% 13.338%
Tier 1 Capital Ratio 20.077% 28.325% – 13.338%
Total Capital Ratio – 17.298%
26.917%

2020 13.773% 20.560% – 13.906%
CET1 Capital Ratio 15.030% 20.560% – 13.906%
Tier 1 Capital Ratio 18.063% 22.906% 24.312% 18.049%
Total Capital Ratio

(ii) The breakdown of RWA by each major risk categories of subsidiaries of the Bank are as follows:

Maybank Maybank PT Bank Maybank
Islamic Investment Maybank Singapore
Berhad Bank Berhad Indonesia
RM’000 Limited
RM’000 Tbk RM’000
RM’000
2021 2,192,197 692,518 15,833,548
Standardised Approach exposure 83,621,226 – 24,313,438 26,226,433
Internal Ratings-Based Approach exposure after scaling factor – –
Credit valuation adjustment – – 40,677
692,518
Total RWA for credit risk 85,813,423 – 24,313,438 42,100,658
Total RWA for credit risk absorbed by Maybank and Investment Account Holders* (12,759,358) – –
Total RWA for market risk 956,325
Total RWA for operational risk 1,316,769 977,452 794,836 11,139
9,507,656 5,714,900 3,580,829
Total RWA 2,626,295
83,878,490 30,823,174 45,692,626

2020 2,970,081 869,357 25,386,773 14,807,055
Standardised Approach exposure 80,460,704 – – 25,869,467
Internal Ratings-Based Approach exposure after scaling factor – –
Credit valuation adjustment – 87,700
869,357 25,386,773
Total RWA for credit risk 83,430,785 – – 40,764,222
Total RWA for credit risk absorbed by Maybank and Investment Account Holders* (13,537,755) –
Total RWA for market risk 873,356 865,980
Total RWA for operational risk 1,177,963 836,086 5,672,335 15,082
8,499,254 3,528,759
Total RWA 2,578,799 31,925,088
79,570,247 44,308,063

* In accordance to the BNM Investment Account policy, the credit risk weighted assets funded by investment accounts (Unrestricted Investment Account and Restricted
Investment Account) are excluded from the calculation of capital adequacy ratio of the Bank.

220

NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

61. SEGMENT INFORMATION

(i) By business segments
The Group’s operating segments are Group Community Financial Services, Group Global Banking and Group Insurance and Takaful. The Group determines
and presents operating segments based on information provided to the Board and senior management of the Group.
The Group is organised into three (3) operating segments based on services and products available within the Group as follows:
(a) Group Community Financial Services (“CFS”)
(i) Consumer Banking
Consumer Banking comprises the full range of products and services offered to individuals in the region, which includes savings and fixed
deposits, remittance services, current accounts, consumer loans such as housing loans and personal loans, hire purchases, unit trusts, bancassurance
products and credit cards.
(ii) Small, Medium Enterprise (“SME”) Banking
SME Banking comprises the full range of products and services offered to small and medium enterprises in the region. The products and services
offered include long-term loans such as project financing, short-term credit such as overdrafts and trade financing, and fee-based services such
as cash management and custodian services.
(iii) Business Banking
Business Banking comprises the full range of products and services offered to commercial enterprises in the region. The products and services
offered include long-term loans such as project financing, short-term credit such as overdrafts and trade financing, and fee-based services such
as cash management and custodian services.
(b) Group Global Banking (“GB”)
(i) Group Corporate Banking and Global Markets
Group Corporate Banking and Global Markets comprise of Corporate Banking and Global Markets businesses.
Corporate Banking comprises the full range of products and services offered to business customers in the region, ranging from large corporate
and the public sector. The products and services offered include long-term loans such as project financing, short-term credit such as overdrafts
and trade financing, and fee-based services.
Global Markets comprise the full range of products and services relating to treasury activities and services, which includes foreign exchange,
money market, derivatives and trading of capital market.
(ii) Group Investment Banking
Investment Banking comprises the investment banking and securities broking business. This segment focuses on business needs of mainly large
corporate customers and financial institutions. The products and services offered to customers include corporate advisory services, bond issuance,
equity issuance, syndicated acquisition advisory services, debt restructuring advisory services, and share and futures dealings.
(iii) Group Asset Management
Asset Management comprises the asset and fund management services, providing a diverse range of Conventional and Islamic investment
solutions to retail, corporate and institutional clients.
(c) Group Insurance and Takaful
Insurance and Takaful comprise the business of underwriting all classes of general and life insurance businesses, offshore investment life insurance
business, general takaful and family takaful businesses.

MAYBANK ANNUAL REPORT 2021 221 OUR PERFORMANCE
Pg. 1-6
NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

61. SEGMENT INFORMATION (CONT’D.) THE FINANCIALS
Pg. 7-267
(i) By business segments (cont’d.)

<--------------------------------- Business Segments ---------------------------------->

<------------ Group Global Banking ----------->

Group Group Group Group Group Group Head Office Total
2021 Community Corporate Investment Asset Insurance and Others RM’000
Banking & Management and Takaful
Financial Banking RM’000 RM’000
Services Global RM’000 RM’000
RM’000 Markets
RM’000

Net interest income and income from IBS 7,031,576 4,152,026 316,385 202 1,317,978 (784,122) 12,034,045
operations: – – (11,566) 2,202 57,967 (48,603) –
304,819
– External 7,031,576 4,152,026 304,819 2,404 1,375,945 (832,725) 12,034,045
– Inter-segment 55,849
7,031,576 4,152,026 2,404 1,375,945 (832,725) 12,034,045
Net interest income 4,235,520 1,980,925 – – – 1,300,305 7,572,599
Income from IBS operations 1,194,658 – 8,846,782
Net earned insurance premiums – – 1,555,326 8,846,782 – 4,470,670
Other operating income/(loss) 2,785,640 2,039,806 117,414 (562,373) (1,104,475)
– 32,924,096
Total operating income/(loss) 14,052,736 8,172,757 1,555,326 119,818 9,660,354 (636,895)
Net insurance benefits and claims (989,386)
– – – (7,752,187) 276,488 (7,475,699)
incurred, net fee and commission 565,940
expenses, change in expense liabilities 14,052,736 8,172,757 119,818 1,908,167 (360,407) 25,448,397
and taxation of life and takaful fund (7,461,089) (1,914,936) (5,514) (146,036) (1,007,092) – (11,518,539)

Net operating income/(loss) 6,591,647 6,257,821 – (26,218) 901,075 (360,407) 13,929,858
Overhead expenses
(839,549) (1,809,672) (25,179) (69) (3,737) – (2,658,541)
Operating profit/(loss) before impairment – (598,602) 535,247 – 304 – (598,298)
losses
725 37,700 2,742 (20,168) 34,315 – 27,393
Allowances for impairment losses on 5,752,823 3,887,247 537,989 (46,455) 931,957 (360,407) 10,700,412
loans, advances, financing and other
debts, net – 183,441 – – – 186,183
5,752,823 4,070,688 (46,455) 931,957 (360,407)
(Allowances for)/writeback of impairment 10,886,595
losses on financial investments, net (2,565,080)

Writeback of/(allowances for) impairment 8,321,515
losses on other financial assets and (225,286)
goodwill, net
8,096,229
Operating profit/(loss)
Share of profits/(losses) in associates and

joint ventures

Profit/(loss) before taxation and zakat
Taxation and zakat

Profit after taxation and zakat
Non-controlling interests

Profit for the financial year attributable
to equity holders of the Bank

Included in other operating income are: 1,262,826 100,733 92,537 47,637 – (162,026) 1,341,707
Fee income: 883,241 314,214 274,845 147,088 52,900 (134,727) 1,537,561
Commission –
Service charges and fees – 10,367 41,816 – – – 52,183
Underwriting fees 68,298 – 496,111 – – – 496,111
Brokerage income 312,956 – – (7,173) 210,627
Fees on loans, advances and financing 147,885 1,617 – – 7,481 504,459
Fee income from IBS operations (194,237) 130,151 53,871
(274,760) (499) (22,633) – (299,986)
Included in overhead expenses are: (194,161) (49,198) (33,419) (3,909) (22,142) – (448,564)
Depreciation of property, plant and (98,194) (49,559) (30,603) – (282,724)
equipment (52,542) –
Depreciation of right-of-use assets (5,418)
Amortisation of intangible assets

222

NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

61. SEGMENT INFORMATION (CONT’D.)

(i) By business segments (cont’d.)

<--------------------------------- Business Segments ---------------------------------->

<------------ Group Global Banking ----------->

Group Group Group Group Group Group Head Office Total
2020 Community Corporate Investment Asset Insurance and Others RM’000
Banking & Management and Takaful
Financial Banking RM’000 RM’000
Services Global RM’000 RM’000
RM’000 Markets
RM’000

Net interest income and income from IBS 6,947,974 4,191,030 245,232 268 1,164,890 (1,459,005) 11,090,389
operations: – – (3,180) 2,024 95,511 (94,355) –

– External 6,947,974 4,191,030 242,052 2,292 1,260,401 (1,553,360) 11,090,389
– Inter-segment 6,947,974 4,191,030 242,052
3,315,495 1,578,693 2,292 1,260,401 (1,553,360) 11,090,389
Net interest income 74,882 – – 1,166,512 6,135,582
Income from IBS operations – – – – 9,458,856
Net earned insurance premiums 2,650,453 2,977,525 9,458,856 – 7,299,202
Other operating income/(loss) 12,913,922 8,747,248 1,211,179 141,586 821,931 (503,472)
1,528,113 33,984,029
Total operating income/(loss) – – 143,878 11,541,188 (890,320)
Net insurance benefits and claims 12,913,922 8,747,248 –
(7,260,028) (1,900,132) 1,528,113 – (9,559,623) 338,820 (9,220,803)
incurred, net fee and commission (1,007,286)
expenses, change in expense liabilities 5,653,894 6,847,116 143,878 1,981,565 (551,500) 24,763,226
and taxation of life and takaful fund 520,827 (110,163) (944,297) – (11,221,906)
(1,986,793) (2,604,030)
Net operating income/(loss) (1,566) 33,715 1,037,268 (551,500) 13,541,320
Overhead expenses (22) (412,864)
255 – (6,192) – (4,598,581)
Operating profit/(loss) before impairment (62) (31,575)
losses 3,667,017 3,798,647 (15,635) – (1,287) – (413,918)
503,881
Allowances for impairment losses on – 209,305 (4) (33,736) – (81,012)
loans, advances, financing and other 3,667,017 4,007,952 (158) 33,711 996,053 (551,500) 8,447,809
debts, net 503,723
– – – 209,147
(Allowances for)/writeback of impairment 33,711 996,053 (551,500) 8,656,956
losses on financial investments, net (1,937,877)
6,719,079
Allowances for impairment losses on other (237,860)
financial assets and goodwill, net
6,481,219
Operating profit/(loss)
Share of profits/(losses) in associates and

joint ventures

Profit/(loss) before taxation and zakat
Taxation and zakat

Profit after taxation and zakat
Non-controlling interests

Profit for the financial year attributable
to equity holders of the Bank

Included in other operating income are: 1,169,210 114,001 35,190 45,259 – (100,640) 1,263,020
Fee income: 802,742 296,061 233,908 130,303 (1,855) (112,121) 1,349,038
Commission –
Service charges and fees – 12,268 19,558 – – – 31,826
Underwriting fees 69,356 – 493,009 – – – 493,009
Brokerage income 326,415 – – (2,625) 237,004
Fees on loans, advances and financing 168,479 1,794 – – (48,930) 432,773
Fee income from IBS operations (197,309) 100,129 55,159
(267,666) (530) (22,788) – (311,984)
Included in overhead expenses are: (192,614) (53,757) (37,600) (2,561) (23,719) – (450,736)
Depreciation of property, plant and (101,574) (55,216) (27,259) – (286,899)
equipment (11,878) (219)
Depreciation of right-of-use assets (54,929)
Amortisation of intangible assets

MAYBANK ANNUAL REPORT 2021 223 OUR PERFORMANCE
Pg. 1-6
NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

61. SEGMENT INFORMATION (CONT’D.) THE FINANCIALS
Pg. 7-267
(ii) By geographical locations

The Group has operations in Malaysia, Singapore, Indonesia, the Philippines, Brunei Darussalam, People’s Republic of China, Hong Kong SAR, Vietnam,
United Kingdom, United States of America, Cambodia, Laos, Myanmar, Labuan Offshore and Thailand.

With the exception of Malaysia, Singapore and Indonesia, no other individual country contributed more than 10% of the consolidated operating revenue
before operating expenses and of the total assets.

Operating revenue, net operating income, profit before taxation and zakat, and assets based on geographical locations of customers are as follows:

Income statement items Operating Net Profit
For the financial year ended revenue operating before
RM’000 taxation
31 December 2021 income and zakat
Malaysia RM’000 RM’000
Singapore
Indonesia 34,746,538 23,473,157 13,921,386
Others 9,186,422 4,088,024 1,834,771
3,773,794 2,643,873 505,481
Elimination* 6,272,106 1,483,169 (591,015)

Group 53,978,860 31,688,223 15,670,623
(8,019,470) (6,239,826) (4,784,028)

45,959,390 25,448,397 10,886,595

31 December 2020 37,410,869 21,448,121 11,229,826
Malaysia 10,472,201 4,256,069 579,687
Singapore 2,735,102 666,206
Indonesia 4,376,644 1,545,751 161,812
Others 5,870,318
29,985,043 12,637,531
Elimination* 58,130,032 (5,221,817) (3,980,575)
Group (7,099,067)
24,763,226 8,656,956
* Inter-segment revenues are eliminated on consolidation. 51,030,965

The total non-current and current assets based on geographical locations are as follows:

Non-current assets1 Current assets2

Statement of financial position items: 2021 2020 2021 2020
Malaysia RM’000 RM’000 RM’000 RM’000
Singapore
Indonesia 9,310,431 9,327,742 577,263,152 563,867,090
Others 1,122,931 1,173,454 243,621,050 250,994,782

Elimination3 192,254 229,572 48,595,373 48,868,316
Group 400,463 355,145 97,530,995 83,779,476

11,026,079 11,085,913 967,010,570 947,509,664
(67,017) (43,561) (89,797,239) (101,692,502)

10,959,062 11,042,352 877,213,331 845,817,162

1 Non-current assets consist of investment properties, property, plant and equipment, right-of-use assets and intangible assets.
2 Current assets are total assets excluding non-current assets as mentioned above.
3 Inter-segment balances are eliminated on consolidation.

224

NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

62. SIGNIFICANT AND SUBSEQUENT EVENTS

There are no significant adjusting events after the statements of financial position date up to the date when the financial statements are authorised for issuance
which is within the period from 1 January 2022 to 24 February 2022.

The following are the significant events of the Group and of the Bank during the financial year ended 31 December 2021:

(a) Upsizing of the Sukuk Programme from up to RM10.0 billion to up to RM30.0 billion in nominal value (“Sukuk Programme”), revision of terms of
the Sukuk Programme and Issuance of Tier 2 Subordinated Sukuk Murabahah of RM3.0 billion in nominal value (“RM3.0 billion Subordinated Sukuk
Murabahah”) under the Sukuk Programme

Maybank had on 6 April 2021 obtained the approval from BNM for the upsizing of the Sukuk Programme from up to RM10.0 billion in nominal value
to up to RM30.0 billion in nominal value and revised certain terms and conditions of the Sukuk Programme mainly to:

(1) reflect the amendments consequential to the Upsizing of the Sukuk Programme;

(2) update the references to the latest version of the relevant guidelines; and

(3) incorporate relevant updates introduced under the relevant guidelines, which include the incorporation of an additional enforcement event for each
of the Subordinated Sukuk Murabahah and the AT1 Sukuk Mudharabah to comply with the requirements under the Securities Commission Malaysia’s
(“SC”) Guidelines on Trust Deeds revised on 23 July 2020.

On 5 August 2021, the Bank has completed the issuance of RM3.0 billion Subordinated Sukuk Murabahah under the upsized Sukuk Programme. Details
of the issuance are as follows:

Maturity Date Nominal Value Description Tenor

5 August 2031 RM 3.0 billion Tier 2 Subordinated Sukuk Murabahah (10 non-call 5) 10 years

(b) Redemption of USD500 million Tier 2 Fixed Rate Subordinated Notes pursuant to the RM15.0 billion Multicurrency Medium Term Note Programme
by the Bank

On 29 October 2021, the Bank fully redeemed the USD500 million Tier 2 Fixed Rate Subordinated Notes. USD500 million Tier 2 Fixed Rate Subordinated
Notes was issued on 29 April 2016.

63. INCOME STATEMENT AND STATEMENT OF FINANCIAL POSITION OF INSURANCE AND TAKAFUL BUSINESS

(a) Income statement

Life Fund Family Takaful Fund General Takaful Fund Shareholders’ Total
and General Funds

Group 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Operating revenue
4,626,482 6,027,996 1,679,970 2,116,994 1,377,052 1,455,356 1,887,088 1,846,882 9,570,592 11,447,228
Interest income
Interest expense 569,689 496,801 467,072 448,186 84,670 72,285 268,722 246,174 1,390,153 1,263,446
– – – – – – (14,208) (3,045)
Net interest income (14,208) (3,045)
Net earned insurance premiums
Other operating income 569,689 496,801 467,072 448,186 84,670 72,285 254,514 243,129 1,375,945 1,260,401
4,396,822 5,350,500 1,553,439 1,334,696 1,302,694 1,355,587 1,593,827 1,418,073 8,846,782 9,458,856
Total operating income (305,741) (323,115) (562,373)
Net insurance benefits and claims incurred, 203,066 374,353 (4,766) 40,419 71,249 202,748 820,586

net fee and commission expenses, change 4,660,770 6,050,367 1,697,396 2,157,235 1,382,598 1,468,291 1,919,590 1,863,950 9,660,354 11,539,843
in expense liabilities and taxation of life
and takaful fund (4,429,287) (5,816,277) (1,679,479) (2,120,702) (1,388,360) (1,470,906) (255,061) (151,738) (7,752,187) (9,559,623)

Net operating income 231,483 234,090 17,917 36,533 (5,762) (2,615) 1,664,529 1,712,212 1,908,167 1,980,220
Overhead expenses (235,772) (230,187) (26,284) (32,476) (521) (268) (736,550) (687,461) (999,127) (950,392)

Operating (loss)/profit before impairment (4,289) 3,903 (8,367) 4,057 (6,283) (2,883) 927,979 1,024,751 909,040 1,029,828
losses
181 (104) (22) – (923) 2,689 (2,973) (8,777) (3,737) (6,192)
Writeback of/(allowances for) impairment 44 (1,174) – ––– 260 (113) 304 (1,287)
losses on loans, advances, financing and
other debts, net 4,064 (2,625) 8,389 (4,057) 7,206 194 14,656 (27,248) 34,315 (33,736)

Writeback of/(allowances for) impairment ––––– – 939,922 988,613 939,922 988,613
losses on financial investments, net ––––– – (268,356) (278,647) (268,356) (278,647)

Writeback of/(allowances for) impairment ––––– – 671,566 709,966 671,566 709,966
losses on other financial assets and
goodwill, net

Profit before taxation and zakat
Taxation and zakat

Profit for the financial year

MAYBANK ANNUAL REPORT 2021 225 OUR PERFORMANCE
Pg. 1-6
NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

63. INCOME STATEMENT AND STATEMENT OF FINANCIAL POSITION OF INSURANCE AND TAKAFUL BUSINESS (CONT’D.) THE FINANCIALS
Pg. 7-267
(b) Statement of financial position

Life Fund Family Takaful Fund General Takaful Fund Shareholders’ Total
and General Funds 2021
RM’000
Group 2021 2020 2021 2020 2021 2020 2021 2020 2020
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Assets
Cash and short-term funds 720,239 722,325 11,182 5,783 2,098 38,477 285,153 252,170 1,018,672 1,018,755
Deposits and placements with financial 860,786 1,896,199 1,488,316 2,811,690 280,550 969,131 1,737,626 1,829,400 4,367,278 7,506,420

institutions 6,584,696 6,719,541 5,485,382 5,910,702 19,603 20,424 1,012,445 1,166,021 13,102,126 13,816,688
Financial assets designated upon initial
5,947,539 4,860,250 602,117 540,374 135,020 28,190 546,044 569,661 7,230,720 5,998,475
recognition at fair value through profit or
loss 7,098,080 4,054,891 4,557,130 3,059,659 2,093,611 1,227,357 4,723,167 3,960,583 18,471,988 12,302,490
Financial investments at fair value through – – – – – – 13,296 11,751 13,296 11,751
profit or loss – – – – 93,457 88,900 362,155 350,272
Financial investments at fair value through 268,698 261,372 – – – – 871 12,037 35,965 152,539
other comprehensive income 35,094 140,502
Financial investments at amortised cost 971,460
Loans, advances and financing 1,531,147 541,915 440,495 316,950 3,640 356,542 4,572,762 4,563,174 7,515,864 5,778,581
Derivative assets 141,478 82,112 25,505 27,314 – 4,400 670,006 530,815 840,629 644,641
Reinsurance/retakaful assets and other 807,730 796,250 – – 162,459 140,180 970,189 936,430
insurance receivables – – – – – 5,841 5,624 5,841 5,624
Other assets – – – – – – 152 152 152 152
Investment properties 94,159 – – – – – 62,855 64,292 157,014 156,223
Statutory deposits with central banks 124 91,931 – – – – 40,850 24,923 40,974 25,009
Interest in associates 56,141 86 – – 8,292 – 103,952 59,268 160,093 110,188
Property, plant and equipment 2,782 50,920 – – 4,572 77,760 56,789 94,195 68,545
Right-of-use assets 3,438 5,361 3,746 3,514,274
Intangible assets 24,148,693 2,649,093 14,108,696 13,335,740 54,387,151 48,882,783
Deferred tax assets 20,221,732 12,615,488 12,676,218

Total assets

Liabilities 12,312 3,473 – – – – 9,451 – 21,763 3,473
Derivative liabilities
Insurance/takaful contract liabilities and 21,025,536 17,670,026 12,246,764 11,984,943 2,947,816 2,238,292 5,873,499 5,801,504 42,093,615 37,694,765
3,038,195 2,501,180 347,600 636,813 562,920 397,599 (916,048) (430,416) 3,032,667 3,105,176
other insurance payables 83 (938) – –
Other liabilities* 15,637 (32,868) 21,041 55,400 3,538 13,202 29,667 93,264 45,387 59,458
Provision for taxation and zakat 57,013 79,921 – – – – 311,332 338,858 392,924 487,381
Deferred tax liabilities 1,009,848 1,009,848
Subordinated obligations – – 12,676,218 3,514,274 2,649,093 – –
6,317,749
Total liabilities 24,148,693 20,221,732 12,615,488 5,803,210 46,596,204 41,350,253

Equity attributable to equity holders of – – – – – – 660,865 660,865 660,865 660,865
the Subsidiaries – – – – – – 7,130,082 6,871,665 7,130,082 6,871,665

Share capital – – – – – – 7,790,947 7,532,530 7,790,947 7,532,530
Other reserves
24,148,693 20,221,732 12,615,488 12,676,218 3,514,274 2,649,093 14,108,696 13,335,740 54,387,151 48,882,783
Total liabilities and shareholders' equity

* Included in other liabilities are the amounts due to/(from) life, general and investment-linked funds which are unsecured, not subject to any interest elements and are
repayable on demand.

226 Note 2021 2020
RM’000 RM’000
NOTES TO THE (f)
FINANCIAL STATEMENTS (g) 12,127,687 9,919,980
(h) 3,000,157 –
31 December 2021 (i)
(j) 10,420,749 3,625,611
64. THE OPERATIONS OF ISLAMIC BANKING SCHEME (“IBS”) (k) 784,302 –
(l)
(a) Statement of financial position (m) 15,082,779 18,453,139
(n) 22,867,781 16,381,007
Group (o) 192,465,717 203,666,875
Assets (p)
Cash and short-term funds (q) 117,420 385,303
Deposits and placements with financial institutions (r) 5,710,586 3,459,012
Financial assets purchased under resale agreements
Financial investments at fair value through profit or loss 20,447 12,591
Financial investments at fair value through other comprehensive income 546 979
Financial investments at amortised cost
Financing and advances 6,126 9,901
Derivative assets 190,616 –
Other assets
Statutory deposits with central banks 262,794,913 255,914,398
Property, plant and equipment
Right-of-use assets (s) 179,514,915 165,268,243
Deferred tax assets
Total assets (t) 28,720,799 23,840,796

Liabilities (u) 24,170,127 38,770,852
Customers’ funding:
– Deposits from customers 19,561 38,086
– Investment accounts of customers1
Deposits and placements from financial institutions (m) 177,545 656,302
Bills and acceptances payable
Derivative liabilities (v) 2,189,975 783,382
Other liabilities
Deferred tax liabilities (r) – 449,812
Provision for taxation and zakat
Term funding (w) 38,799 21,256
Subordinated sukuk
Capital securities (x) 10,923,177 10,895,058
Total liabilities
(y) 2,021,814 2,028,303
Islamic Banking Capital Funds
Islamic Banking Funds (z) 1,002,441 1,002,441
Retained profits
Other reserves 248,779,153 243,754,531

Total liabilities and Islamic Banking Capital Funds (d) 10,327,374 7,934,444

Restricted investment accounts managed by the Group (d) 3,488,469 2,983,827

TOTAL ISLAMIC BANKING ASSETS OWNED AND MANAGED BY THE GROUP 199,917 1,241,596

Commitments and contingencies 14,015,760 12,159,867

1 Investment accounts of customers are used to fund financing and advances as disclosed in Note 64(l). 262,794,913 255,914,398

(t) 30,147,795 –

292,942,708 255,914,398

(aj) 83,982,957 76,524,814

The accompanying notes form an integral part of the financial statements.

MAYBANK ANNUAL REPORT 2021 227 OUR PERFORMANCE
Pg. 1-6
NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

64. THE OPERATIONS OF ISLAMIC BANKING SCHEME (“IBS”) (CONT’D.) Note 2021 2020 THE FINANCIALS
(aa) RM’000 RM’000 Pg. 7-267
(b) Income statement (ab)
(ac) 8,811,464 8,577,690
Group (ad) 951,680 1,008,062
(ae) 557,760
Income derived from investment of depositors’ funds (af) (524,946) 468,227
Income derived from investment of investment account funds 241,111 (929,159)
Income derived from investment of Islamic Banking Funds (ag) (5,629) (253,252)
Allowances for impairment losses on financing and advances, net
Writeback of/(allowances for) impairment losses on financial investments, net (ah) 10,031,440 (1,452)
Allowances for impairment losses on other financial assets, net 85
(ai) 8,870,116
Total distributable income (3,472,050) –
Profit share income from investment account (289,503)
Profit distributed to depositors (4,610,219)
Profit distributed to investment account holders 6,269,972 (370,986)
(409,401)
Total net income (1,691,269) 3,888,911
Finance cost (482,323)
Overhead expenses 4,169,302 (1,629,392)
(1,011,858)
Profit before taxation and zakat 1,777,196
Taxation (26,591) (454,140)
Zakat
3,130,853 (14,673)
Profit for the financial year
1,308,383

For consolidation and amalgamation with the conventional banking operations, income from Islamic Banking Scheme as shown on the face of the
consolidated income statement, comprises the following items:

Group 2021 2020
RM’000 RM’000
Income derived from investment of depositors' funds
Income derived from investment of investment account funds 8,811,464 8,577,690
Income derived from investment of Islamic Banking Funds 951,680 1,008,062
557,760
Total income before allowances for impairment losses on financial assets and overhead expenses 468,227
Profit share income from investment account 10,320,904
Profit distributed to depositors 85 10,053,979
Profit distributed to investment account holders –
(3,472,050)
Finance cost (289,503) (4,610,219)
Net of intercompany income and expenses (370,986)
6,559,436
Income from Islamic Banking Scheme operations reported in the income statement of the Group (409,401) 5,072,774
1,422,564 (482,323)
1,545,131
7,572,599
6,135,582

(c) Statement of comprehensive income 2021 2020
RM’000 RM’000
Group 3,130,853 1,308,383

Profit for the financial year (451) 321
Other comprehensive income: (567,768) 306,702
Items that may be reclassified subsequently to profit or loss: (744,977) 399,934
Net (loss)/gain on foreign exchange translation
Net (loss)/gain on financial investments at fair value through other comprehensive income (1,585) 2,752
– Net (loss)/gain from change in fair value 178,794 (95,984)
– Changes in expected credit losses (568,219) 307,023
– Income tax effect
(568,219) 307,023
Other comprehensive (loss)/income for the financial year, net of tax
Total comprehensive income for the financial year 2,562,634 1,615,406

The accompanying notes form an integral part of the financial statements.

228

NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

64. THE OPERATIONS OF ISLAMIC BANKING SCHEME (“IBS”) (CONT’D.)

(d) Statement of changes in Islamic Banking Capital Funds

<---------------------------- Non-distributable -------------------------->

Fair Value

Through *Equity
Contribution
Other
From
Islamic Comprehensive Exchange the Holding Distributable
Banking Fluctuation Retained
Regulatory Income Company Profits
Funds Reserve RM’000 RM’000
Group RM’000 Reserve Reserve RM’000 Total
As at 31 December 2021 RM’000
RM’000 RM’000
At 1 January 2021 12,159,867
7,934,444 594,474 645,022 403 1,697 2,983,827
Profit for the financial year 3,130,853
Other comprehensive loss – – – – – 3,130,853 (568,219)

Net loss on foreign exchange translation – – (567,768) (451) – – (451)
Net loss on financial investments at fair value
– – – (451) – – (567,768)
through other comprehensive income
– – (567,768) – – –

Total comprehensive (loss)/income for the – – (567,768) (451) – 3,130,853 2,562,634
financial year
– (473,460) – – – 473,460 –
Transfer from regulatory reserve 2,392,930 – – – – – 2,392,930
Issue of ordinary shares – – – – (3,099,671)
Dividends paid – (3,099,671)
121,014 77,254 (48) 1,697 14,015,760
At 31 December 2021 10,327,374 3,488,469

<---------------------------- Non-distributable -------------------------->

Fair Value

Through *Equity
Contribution
Other
From
Islamic Comprehensive Exchange the Holding Distributable
Banking Fluctuation Retained
Regulatory Income Company Profits
Funds Reserve RM’000 RM’000
Group RM’000 Reserve Reserve RM’000 Total
As at 31 December 2020 RM’000
RM’000 RM’000
At 1 January 2020 11,276,506
7,202,398 846,497 338,320 259 1,697 2,887,335
Profit for the financial year 1,308,383
Other comprehensive income – – – – – 1,308,383 307,023
321
Net gain on foreign exchange translation – – 306,702 321 – –
Net gain on financial investments at fair value 306,702
– – – 321 – –
through other comprehensive income
– – 306,702 – – –

Total comprehensive income for the financial year – – 306,702 321 – 1,308,383 1,615,406

Transfer (to)/from conventional banking operations – – – (177) – 177 –
Transfer from regulatory reserve – (252,023) – – – 252,023 –
Issue of ordinary shares 732,046 – – – 732,046
Dividends paid – – – – – – (1,464,091)
– (1,464,091)
At 31 December 2020 7,934,444 645,022 403 1,697 12,159,867
594,474 2,983,827

* This equity contribution reserve from the holding company is pertaining to waiver of intercompany balances between respective subsidiaries and its holding company.

The accompanying notes form an integral part of the financial statements.

MAYBANK ANNUAL REPORT 2021 229 OUR PERFORMANCE
Pg. 1-6
NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

64. THE OPERATIONS OF ISLAMIC BANKING SCHEME (“IBS”) (CONT’D.) 2021 2020 THE FINANCIALS
RM’000 RM’000 Pg. 7-267
(e) Statement of cash flows
4,169,302 1,777,196
Group
599,124 1,019,481
Cash flows from operating activities (241,111) 253,252
Profit before taxation and zakat 1,452
Adjustments for: 5,629 31,983
55,478 240,920
Allowances for impairment losses on financing and advances, net 106,838 15,203
(Writeback of)/allowances for impairment losses on financial investments, net (1,456) 674
Allowances for impairment losses on other financial assets, net (1,417) (9,184)
Amortisation of premiums, net (3,896) (101,270)
Modification loss on contractual cash flows arising from financial assets (73,199) –
Unrealised (gain)/loss on revaluation of derivatives (97,843)
Unrealised (gain)/loss on revaluation of financial investments at fair value through profit or loss (889) 505
Net gain on disposal of financial investments at fair value through profit or loss 11,245 3,129
Net gain on disposal of financial investments through other comprehensive income 2,066
Net gain on redemption of financial investments at amortised cost 446 482,323
Loss/(gain) on foreign exchange transactions 2,503 398
Depreciation of property, plant and equipment 2,903
Depreciation of right-of-use assets 409,401 3,620,285
ESGP expenses –
Finance cost 297
Finance cost on lease liabilities (3,627,063)
5,041,198 (15,156,087)
Operating profit before working capital changes (3,000,157)
Change in deposits and placements with financial institutions (6,800,767) 234,536
Change in financial assets purchased under resale agreements (14,329,659) 1,115,855
Change in financing and advances 4,229,446
Change in derivative assets and liabilities (209,418) 4,229,106
Change in other assets (2,665,862)
Change in statutory deposits with central banks 41,051
Change in deposits from customers (7,856) 3,103,126
Change in deposits and placements from financial institutions 14,246,672
Change in investment accounts of customers 15,299,990 (99,807)
Change in bills and acceptances payable (9,267,740)
Change in financial investments portfolio 5,515,840
Change in other liabilities (18,525) 192,593

Cash used in operations 9,705,181 (11,384,699)
Taxes and zakat paid 1,406,236 (214,102)

Net cash generated from/(used in) operating activities 4,372,511 (11,598,801)
(1,067,434)
Cash flows from investing activities
Purchase of property, plant and equipment 3,305,077

Net cash used in investing activities (15) (3)
(15) (3)
Cash flows from financing activities
Dividends paid (3,099,671) (1,464,091)
Dividends paid for subordinated sukuk (82,647) (91,759)
Dividends paid for term funding
Dividends paid for capital securities (253,354) (453,790)
Proceeds from issuance of ordinary shares (49,500) (49,364)
(Repayment)/drawdown of term funding 732,046
Repayment of lease liability 2,392,930
(2,270) 1,115,919
Net cash used in financing activities (2,843) (2,728)

Net increase/(decrease) in cash and cash equivalents (1,097,355) (213,767)
Cash and cash equivalents at 1 January
2,207,707 (11,812,571)
Cash and cash equivalents at 31 December 9,919,980 21,732,551

Cash and cash equivalents comprise: 12,127,687 9,919,980
Cash and short-term funds
12,127,687 9,919,980
The accompanying notes form an integral part of the financial statements.

230

NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

64. THE OPERATIONS OF ISLAMIC BANKING SCHEME (“IBS”) (CONT’D.) 2021 2020
RM’000 RM’000
(f) Cash and short-term funds
3,962 29,507
Group 12,123,725 9,890,473
Cash, bank balances and deposits with financial institutions
Money at call 12,127,687 9,919,980

(g) Deposits and placements with financial institutions 2021 2020
RM’000 RM’000
Group 3,000,157
Licensed banks –

(h) Financial assets purchased under resale agreements Note 2021 2020
(i) RM’000 RM’000
Group
Malaysian Government Investment Issues 9,662,381 3,627,063
Corporate Bonds and Sukuk 765,449 –

Allowances for impairment losses 10,427,830 3,627,063
(7,081) (1,452)

10,420,749 3,625,611

(i) Analysis of changes in gross carrying amount and the corresponding allowances for impairment losses on financial assets purchased under resale
agreements are as follows:

As at 31 December 2021

Changes in the financial assets purchased under resale agreement that contributed to changes in the loss allowances during the financial year ended
31 December 2021 was mainly due to the following:

– The overall increase in the gross carrying amount for financial assets purchased under resale agreements was mainly contributed by new financial
assets purchased which correspondingly increased the ECL allowances.

Stage 1 Stage 2 Stage 3

Group 12-month Lifetime ECL Lifetime ECL Total
ECL not credit credit RM’000
impaired
RM’000 RM’000 impaired
RM’000

At 1 January 2021 1,452 – – 1,452
New financial assets originated or purchased 7,081 – – 7,081
Financial assets derecognised (1,452) – – (1,452)

At 31 December 2021 7,081 – – 7,081

As at 31 December 2020

Changes in the financial assets purchased under resale agreement that contributed to changes in the loss allowances during the financial year ended
31 December 2020 was mainly due to the following:

– The overall increase in the gross carrying amount for financial assets purchased under resale agreements was mainly contributed by new financial
assets purchased which correspondingly increased the ECL allowances.

Stage 1 Stage 2 Stage 3

Group 12-month Lifetime ECL Lifetime ECL Total
ECL not credit credit RM’000
impaired
RM’000 RM’000 impaired
RM’000

At 1 January 2020 ––––
New financial assets originated or purchased 1,452 – – 1,452

At 31 December 2020 1,452 – – 1,452

MAYBANK ANNUAL REPORT 2021 231 OUR PERFORMANCE
Pg. 1-6
NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

64. THE OPERATIONS OF ISLAMIC BANKING SCHEME (“IBS”) (CONT’D.) 2021 2020 THE FINANCIALS
RM’000 RM’000 Pg. 7-267
(i) Financial investments at fair value through profit or loss
659,118 –
Group
At fair value 125,184 –
Money market instruments: 784,302 –
Malaysian Government Treasury Bills

Unquoted securities:
Outside Malaysia:
Corporate Sukuk
Total financial investments at FVTPL

(j) Financial investments at fair value through other comprehensive income Note 2021 2020
RM’000 RM’000
Group
At fair value (i) 10,848,583 13,473,916
Money market instruments:
Malaysian Government Investment Issues 29,614 29,032
Khazanah Sukuk

10,878,197 13,502,948

Unquoted securities: (ii) 3,274,997 4,147,084
In Malaysia:
Corporate Sukuk – 41,892
Government Sukuk
Equity 1,250 1,250

3,276,247 4,190,226

Outside Malaysia: 928,335 759,965
Corporate Sukuk 15,082,779 18,453,139

Total financial investments at FVOCI

(i) Included in the financial investments at fair value through other comprehensive income are the Malaysian Government Investment Issues which has
been recognised as part of SRA balance amounting to RM10.0 million for the Group (2020: RM5.0 million).

(ii) As at 31 December 2021, the Corporate Sukuk funded by RPSIA amounting to RM343.8 million was recorded off-balance sheet under the operations
of IBS, upon revision in the agreement between Maybank Islamic Berhad (“MIB”) with the Bank and with the third party on the timing of cash flow
remittance received from the financial investments to the investment account holders.

(iii) The maturity profile of money market instruments are as follows:

Within one year 2021 2020
One year to three years RM’000 RM’000
Three years to five years
After five years 584,570 158,839
3,880,036 5,251,253
1,501,305 1,538,523
4,912,286 6,554,333

10,878,197 13,502,948

232

NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

64. THE OPERATIONS OF ISLAMIC BANKING SCHEME (“IBS”) (CONT’D.)

(j) Financial investments at fair value through other comprehensive income (cont’d.)

(iv) Analysis of changes in gross carrying amount and the corresponding allowances for impairment losses on financial investments at fair value through
other comprehensive income are as follows:

As at 31 December 2021

Changes in the financial investments at fair value through other comprehensive income that contributed to the changes in the loss allowances during
the financial year ended 31 December 2021 were mainly due to the following:

– The overall decrease in the gross carrying amount of financial investments at FVOCI was mainly contributed by Malaysian Government Investment
Issues which did not attract loss allowances.

– The increase in the gross carrying amount of Foreign Corporate Sukuk was due to new financial assets purchased during the year which
correspondingly increased the ECL allowances.

Group Stage 1 Stage 2 Stage 3 Total
RM’000
At 1 January 2021 12-month Lifetime ECL Lifetime ECL
Transferred to Stage 1 ECL not credit credit 3,363
Net remeasurement of allowances impaired –
New financial assets originated or purchased RM’000 RM’000 impaired
Financial assets derecognised RM’000 (114)
Changes in models/risk parameters 2,812 551 2,923
Exchange differences 551 (551) – (2,649)
(114) –
At 31 December 2021 – – 31
2,923 – – 78
(2,649) – –
– – 3,632
31 – –
78
– –
3,632

As at 31 December 2020

Changes in the financial investments at fair value through other comprehensive income that contributed to the changes in the loss allowances during
the financial year ended 31 December 2020 were mainly due to the following:

– The overall increase in the gross carrying amount of financial investments at FVOCI was mainly contributed by Corporate Sukuk due to new
financial assets purchased. The increase in the gross carrying amount resulted in corresponding increase in ECL allowances measured on a 12-month
basis.

Group Stage 1 Stage 2 Stage 3 Total
RM’000
At 1 January 2020 12-month Lifetime ECL Lifetime ECL
Transferred to Stage 2 ECL not credit credit 1,866
Net remeasurement of allowances impaired –
New financial assets originated or purchased RM’000 RM’000 impaired
Financial assets derecognised RM’000 518
Changes in models/risk parameters 1,866 – 2,261
Exchange differences (279) 279 – (1,142)
246 272 –
At 31 December 2020 2,261 – (34)
(1,142) – – (106)
– –
(34) – – 3,363
(106) – –

2,812 551 –

MAYBANK ANNUAL REPORT 2021 233 OUR PERFORMANCE
Pg. 1-6
NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

64. THE OPERATIONS OF ISLAMIC BANKING SCHEME (“IBS”) (CONT’D.) 2021 2020 THE FINANCIALS
RM’000 RM’000 Pg. 7-267
(k) Financial investments at amortised cost
Note
Group
At amortised cost (i) 11,246,266 4,588,339
Money market instruments:
Malaysian Government Investment Issues 826,400 932,288
Khazanah Sukuk

12,072,666 5,520,627

Unquoted securities: (ii) 10,823,470 11,130,024
In Malaysia:
Corporate Sukuk

Allowances for impairment losses (iv) (28,355) (269,644)
Total financial investments at amortised cost
22,867,781 16,381,007

(i) Included in the financial investments at amortised cost are Malaysian Government Investment Issues which has been recognised as part of SRA
balance amounting to RM2,840.0 million for the Group (2020: RM2,845.0 million).

(ii) As at 31 December 2020, included in the financial investments at amortised cost are Corporate Sukuk funded by RPSIA amounting to RM2,884.2
million.

Effective 31 December 2021, the Corporate Sukuk funded by RPSIA amounting to RM4,984.0 million was recorded off-balance sheet under the
operations of IBS, upon the revision in the agreement between MIB with the Bank on the timing of cash flow remittance received from the financial
investment to the investment account holders.

(iii) The maturity profile of money market instruments are as follows:

Within one year 2021 2020
One year to three years RM’000 RM’000
Three years to five years
After five years 582,677 129,399
1,123,916 1,072,518

– 618,567
10,366,073 3,700,143

12,072,666 5,520,627

(iv) Analysis of changes in gross carrying amount and the corresponding allowances for impairment losses on financial investments at amortised cost
are as follows:

As at 31 December 2021

Changes in the financial investments at amortised cost that contributed to the changes in the loss allowances during the financial year ended
31 December 2021 were mainly due to the following:

– The overall increase in the gross carrying amount of financial investments at amortised cost was contributed by Malaysian Government Investment
Issues which did not attract loss allowances.

– The decrease in the gross carrying amount of Corporate Sukuk was due to derecognition of financial assets during the financial year which
correspondingly decrease ECL allowances.

234

NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

64. THE OPERATIONS OF ISLAMIC BANKING SCHEME (“IBS”) (CONT’D.)

(k) Financial investments at amortised cost (cont’d.)
(iv) Analysis of changes in gross carrying amount and the corresponding allowances for impairment losses on financial investments at amortised cost
are as follows (cont’d.):
As at 31 December 2021 (cont’d.)

Group Stage 1 Stage 2 Stage 3 Total
RM’000
At 1 January 2021 12-month Lifetime ECL Lifetime ECL
Transferred to Stage 1 ECL not credit credit 269,644
Net remeasurement of allowances impaired –
New financial assets originated or purchased RM’000 RM’000 impaired
Financial assets derecognised RM’000 (17,119)
Changes in models/risk parameters 38,379 231,265 1,636
Exchange differences 346 (346) –
– – (232,168)
At 31 December 2021 (17,119) – – 6,349
1,636 – 13
(1,249) (230,919) –
6,349 – – 28,355
13 – –

28,355 – –

As at 31 December 2020
Changes in the financial investments at amortised cost that contributed to the changes in the loss allowances during the financial year ended 31
December 2020 were mainly due to the following:
– The increase in the gross carrying amount of financial investments at amortised cost was contributed by Corporate Sukuk, due to new financial

assets purchased which correspondingly increased the ECL allowances.
– The increase in the ECL for Stage 2 was due to deterioration in credit risk which correspondingly increase the net remeasurement of allowances.

Group Stage 1 Stage 2 Stage 3 Total
RM’000
At 1 January 2020 12-month Lifetime ECL Lifetime ECL
Transferred to Stage 2 ECL not credit credit 17,995
Net remeasurement of allowances impaired –
New financial assets originated or purchased RM’000 RM’000 impaired
Financial assets derecognised RM’000 246,014
Changes in models/risk parameters 17,995 – 9,257
(1,879) 1,879 – (3,695)
At 31 December 2020 16,628 229,386 – 73
9,257 –
(3,695) – – 269,644
– –
73 – –

38,379 231,265 –

(l) Financing and advances

Group 2021 2020
RM’000 RM’000
Financing and advances*:
(A) Financing and advances at fair value through other comprehensive income 2,175,615 2,741,267
(B) Financing and advances at amortised cost 262,214,501 289,662,732

Unearned income 264,390,116 292,403,999
(68,980,345) (85,698,158)
Gross financing and advances
Allowances for financing and advances: 195,409,771 206,705,841
– Stage 1 – 12-month ECL
– Stage 2 – Lifetime ECL not credit impaired (556,209) (574,213)
– Stage 3 – Lifetime ECL credit impaired (1,678,410) (1,209,931)
(1,254,822)
Net financing and advances (709,435)
203,666,875
192,465,717

* As at 31 December 2020, included in the financing and advances are financial assets funded by RPSIA amounting to RM26,483.7 million. The expected credit losses
relating to these financing amounting to RM446.6 million were reflected as a reduction in both financing and advances and deposits and placements of banks and other
financial institutions as disclosed in Note 64(u).

Effective 31 December 2021, the financing and advances funded by RPSIA amounting to RM25,033.6 million was recorded off-balance sheet under the operations of IBS,
upon revision in the agreement between MIB with the Bank and with the third party on the timing of cash flow remittance received from the financing and advances to
the investment account holders.

The gross exposure of the financing funded by Investment Accounts of customers (“IA”) as at 31 December 2021 was RM28,720.8 million (2020: RM23,840.8 million).

MAYBANK ANNUAL REPORT 2021 235 OUR PERFORMANCE
Pg. 1-6
NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

64. THE OPERATIONS OF ISLAMIC BANKING SCHEME (“IBS”) (CONT’D.) THE FINANCIALS
Pg. 7-267
(l) Financing and advances (cont’d.)

Bai’1 Murabahah Musharakah Al-Ijarah Ijarah3 Others Total
Group RM’000 RM’000 RM’000 Thumma RM’000 RM’000 financing and

2021 Al-Bai advances
(“AITAB”)2 RM’000
Cashline
Term financing: RM’000

– Housing financing – 6,287,366 – – – – 6,287,366
– Syndicated financing
– Hire purchase receivables 12,828,267 81,673,329 1,719,726 – – 602 96,221,924
– Lease receivables – 5,955,729 – – – – 5,955,729
– Other term financing – 11,676,586 – 36,500,533 – – 48,177,119
Trust receipts – – – 815,909 –
Claims on customers under acceptance credits – – – 815,909
Staff financing 8,317,772 82,612,398 536,521 – – 30,604 91,497,295
Credit card receivables – – – – –
Revolving credit – 132,385 – 156,719 – – 132,385
Share margin financing 5,227,288 – – 5,227,288
Financing to: 340,773 2,357,766 7,330 – – 36,492 2,899,080
– Directors of the Bank – – – – 1,355,004 1,355,004
– Directors of subsidiaries – – – 5,760,355
– 5,760,355 – – – –
Unearned income 300 – – 55,212
55,212 –
Gross financing and advances4 – 36,657,552 815,909
Allowances for financing and advances: – 2,750 6 2,756
– 2,271 2,263,577 123 2,694
– Stage 1 – 12–month ECL
– Stage 2 – Lifetime ECL not credit impaired 21,486,812 201,743,435 1,422,831 264,390,116
– Stage 3 – Lifetime ECL credit impaired (68,980,345)

Net financing and advances 195,409,771

(556,209)
(1,678,410)

(709,435)

192,465,717

2020 – 6,354,760 –– – – 6,354,760

Cashline 13,846,268 77,006,822 1,877,969 – – 609 92,731,668
Term financing: – 7,106,556 – – – – 7,106,556
– 9,635,007 – 35,204,145 – –
– Housing financing – – – – 303,050 – 44,839,152
– Syndicated financing – – 303,050
– Hire purchase receivables 10,653,246 106,866,849 610,568 – – 18,364
– Lease receivables – – – – – 50 118,149,027
– Other term financing – – – – – 50
Bills receivables – 106,257 – 179,242 – –
Trust receipts 4,723,695 – – 106,257
Claims on customers under acceptance credits 390,857 2,110,096 8,384 – – 33,633 4,723,695
Staff financing – – – – 1,263,404 2,722,212
Credit card receivables – – – 1,263,404
Revolving credit – 14,068,861 – – – 14,068,861
Share margin financing – –
Financing to: 29,008 29,008
– Directors of the Bank 303,050
– Directors of subsidiaries – 3,361 – – 8 3,369
– 2,542 – 340 48 2,930
Unearned income
24,890,371 228,013,814 2,496,921 35,383,727 1,316,116 292,403,999
Gross financing and advances5 (85,698,158)
Allowances for financing and advances:
206,705,841
– Stage 1 – 12–month ECL
– Stage 2 – Lifetime ECL not credit impaired (574,213)
– Stage 3 – Lifetime ECL credit impaired (1,209,931)
(1,254,822)
Net financing and advances
203,666,875

1 Bai’ comprises Bai’ Bithaman Ajil, Bai’ Al-Inah and Bai’ Al-Dayn.
2 The Group is the owner of the asset. The ownership of an asset will be transferred to the customer via sale at the end of the Ijarah financing.
3 The Group is the owner of the asset. The ownership of an asset will be transferred to the customer at the end of the Ijarah financing subject to the customer’s execution

of the purchase option.
4 Included in financing and advances are the underlying assets under the IA.
5 Included in financing and advances are the underlying assets under the RPSIA and IA.

236 2021 2020
RM’000 RM’000
NOTES TO THE
FINANCIAL STATEMENTS 4,102,492 4,385,735

31 December 2021 30,636,404 26,319,703
19,993,497 30,637,837
64. THE OPERATIONS OF ISLAMIC BANKING SCHEME (“IBS”) (CONT’D.) 16,144,388
2,315,399 127,787,608
(l) Financing and advances (cont’d.) 136,439,893
(i) Financing and advances analysed by type of customers are as follows: 33,265
75,855 1,397,305
Group 1,846,231
Domestic non-banking institutions 206,705,841
Domestic business enterprises: 195,409,771

– Small and medium enterprises 2021 2020
– Others RM’000 RM’000
Government and statutory bodies
Individuals 1,618,632 1,506,079
Other domestic entities 32,783,987 31,474,156
Foreign entities 13,899,657 33,281,314
Gross financing and advances
48,302,276 66,261,549
(ii) Financing and advances analysed by profit rate sensitivity are as follows:
59,652,877 53,987,854
Group 87,454,618 86,456,438
Fixed rate:
147,107,495 140,444,292
– House financing
– Hire purchase receivables 195,409,771 206,705,841
– Other financing
2021 2020
Floating rate: RM’000 RM’000
– House financing
– Other financing 25,278,402 24,118,381
43,898,276 40,840,421
Gross financing and advances
61,572,937 54,518,350
(iii) Financing and advances analysed by economic purpose are as follows: 16,204,503 14,667,103

Group 177,947 148,492
Purchase of securities 3,252,580 4,784,845
Purchase of transport vehicles
Purchase of landed properties: 520 346
2,037,500 2,542,260
– Residential
– Non-residential 500,000 –
Purchase of fixed assets (exclude landed properties) 41,086,366 63,783,960
Personal use
Purchase of consumer durables 1,400,740 1,301,683
Constructions
Mergers and acquisitions 195,409,771 206,705,841
Working capital
Credit cards
Gross financing and advances

MAYBANK ANNUAL REPORT 2021 237 OUR PERFORMANCE
Pg. 1-6
NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

64. THE OPERATIONS OF ISLAMIC BANKING SCHEME (“IBS”) (CONT’D.) THE FINANCIALS
Pg. 7-267
(l) Financing and advances (cont’d.)
(iv) The maturity profile of financing and advances are as follows: 2021 2020
RM’000 RM’000
Group
Within one year 23,468,423 33,131,625
One year to three years 7,961,295 8,896,910
Three years to five years
After five years 16,372,043 15,229,505
Gross financing and advances 147,608,010 149,447,801

(v) Movements in the impaired financing and advances (“impaired financing”) are as follows: 195,409,771 206,705,841

Group 2021 2020
At 1 January RM’000 RM’000
Newly impaired
Reclassified as non-impaired 2,452,406 3,115,266
Amount recovered 238,626 584,878
Amount written off (36,215) (485,955)
Amount related to Restricted Investment Account (339,776) (437,564)
Gross impaired financing at 31 December (233,810) (317,043)
Less: Stage 3 – Lifetime ECL credit impaired (588,475) (7,176)
Net impaired financing at 31 December
1,492,756 2,452,406
Calculation of ratio of net impaired financing (excluding financing funded by IA):1 (709,435) (1,254,822)
Gross impaired financing at 31 December
Less: Stage 3 – Lifetime ECL credit impaired 783,321 1,197,584
Net impaired financing at 31 December
1,429,024 1,776,012
Gross financing and advances (709,435) (1,254,822)
Less: Allowances for impaired financing and advances at amortised cost and FVOCI
Net financing and advances 719,589 521,190

Net impaired financing as a percentage of net financing and advances 166,688,972 156,381,322
(2,946,356) (3,043,122)
1 Excludes financing funded by RPSIA for the financial year ended 31 December 2020.
163,742,616 153,338,200
(vi) Impaired financing and advances by economic purpose are as follows:
0.44% 0.34%
Group
Purchase of securities 2021 2020
Purchase of transport vehicles RM’000 RM’000
Purchase of landed properties:
11,569 76,253
– Residential 126,187 174,184
– Non-residential
Purchase of fixed assets (exclude landed properties) 291,858 381,806
Personal use 146,632 178,437
Purchase of consumer durables
Constructions 920 889
Working capital 39,409 49,336
Credit cards
Impaired financing and advances 2 2
25,099 50,111
844,904 1,536,493

6,176 4,895

1,492,756 2,452,406

238

NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

64. THE OPERATIONS OF ISLAMIC BANKING SCHEME (“IBS”) (CONT’D.)

(l) Financing and advances (cont’d.)

(vii) Analysis of changes in gross carrying amount and the corresponding allowances for impairment losses on financing and advances are as follows:

As at 31 December 2021

Changes in the gross carrying amount of financing and advances carried at fair value through other comprehensive income and amortised cost for
the Group that contributed to the changes in the loss allowances during the financial year ended 31 December 2021 were mainly due to the
following:

– Reduction in other term financing by 23% due to financial assets funded by RPSIA is recorded off-balance sheet effective 31 December 2021
which correspondingly resulted in the decrease in ECL allowances.

– The above decrease is mitigated by the financing growth from hire purchase receivables and house financing by 7% and 4% respectively.

– The ECL for Stage 1 (12-month ECL) decreased primarily due to the improvement in macro-economic outlook and repayment behavioural trend
while ECL for Stage 2 (lifetime ECL not credit impaired) increased mainly contributed by accounts under high risk industry.

– The gross carrying amount of financing and advances that was written off during the year, which is still subject to recovery activity was RM233.8
million (2020: RM317.0 million). This has resulted in the reduction of Stage 3 lifetime ECL credit impaired by the same amount.

At fair value through other comprehensive income

Group Stage 1 Stage 2 Stage 3 Total
RM’000
At 1 January 2021 12-month Lifetime ECL Lifetime ECL
Net remeasurement of allowances ECL not credit credit 4,156
New financial assets originated or purchased impaired 133
Financial assets derecognised RM’000 RM’000 impaired 47
Changes in models/risk parameters RM’000
Exchange differences 1,662 2,494 (3,130)
133 – – 1,085
At 31 December 2021 47 – –
(636) – 11
(2,494) –
1,085 – – 2,302
11 – –

2,302 – –

At amortised cost Stage 1 Stage 2 Stage 3 Total
RM’000
Group 12-month Lifetime ECL Lifetime ECL
At 1 January 2021 ECL not credit credit 3,038,966
Transferred to Stage 1 impaired –
Transferred to Stage 2 RM’000 RM’000 impaired –
Transferred to Stage 3 RM’000 –
Net remeasurement of allowances 574,213 1,209,931
New financial assets originated or purchased 241,131 (229,027) 1,254,822 613,251
Financial assets derecognised (17,310) (12,104) 167,317
Changes in models/risk parameters 45,043 (27,733) (142,171)
Amount related to Restricted Investment Accounts (5,392) (27,532) 32,924 (64,703)
Amount written off (245,822) 741,141 117,932 (446,566)
Exchange differences 115,763 51,554 – (233,810)
At 31 December 2021 (75,656) (24,227)
(42,288) (20,640) – 11,770
(44,063) (17,223)
(20,279) (409,064) 2,944,054
– (233,810)
– 819
256 10,695
1,678,410
556,209 709,435

MAYBANK ANNUAL REPORT 2021 239 OUR PERFORMANCE
Pg. 1-6
NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

64. THE OPERATIONS OF ISLAMIC BANKING SCHEME (“IBS”) (CONT’D.) THE FINANCIALS
Pg. 7-267
(l) Financing and advances (cont’d.)

(vii) Analysis of changes in gross carrying amount and the corresponding allowances for impairment losses on financing and advances are as follows (cont’d.):

As at 31 December 2020

Changes in the gross carrying amount of financing and advances carried at fair value through other comprehensive income and amortised cost for
the Group that contributed to the changes in the loss allowances during the financial year ended 31 December 2020 were mainly due to the
following:

– The high volume of hire purchase receivables, house financing and other term financing originated, increased the gross carrying amount by 9%,
6% and 3% respectively which correspondingly increased the ECL allowances.

– However, there was a reduction in cashline and revolving credits by 6% and 5% respectively which resulted in a decrease in ECL allowances.

– Consistent with industry guidance, the Group has introduced a number of support measures for customers impacted by COVID-19, including the
deferral of payments for retail and non-retail customers for an initial period of up to six months. This has resulted in day-one modification loss
to contractual cash flows recognised by the Group amounting to RM689.1 million.

– Given the disruptive impact of the COVID-19 pandemic, the ECL for Stage 1 (12-month ECL) and Stage 2 (lifetime ECL not credit impaired)
increased primarily due to forward-looking provision.

At fair value through other comprehensive income

Group Stage 1 Stage 2 Stage 3 Total
RM’000
At 1 January 2020 12-month Lifetime ECL Lifetime ECL
New financial assets originated or purchased ECL not credit credit 2,901
Changes in models/risk parameters impaired 1,036
RM’000 RM’000 impaired
At 31 December 2020 RM’000 219
523 2,378
1,036 – – 4,156
–
103 116 –

1,662 2,494 –

At amortised cost Stage 1 Stage 2 Stage 3 Total
RM’000
Group 12-month Lifetime ECL Lifetime ECL
At 1 January 2020 ECL not credit credit 2,240,423
Transferred to Stage 1 impaired –
Transferred to Stage 2 RM’000 RM’000 impaired –
Transferred to Stage 3 RM’000 –
Net remeasurement of allowances 371,029 616,576
New financial assets originated or purchased 192,492 (180,987) 1,252,818 1,141,634
Financial assets derecognised (24,260) 216,014 (11,505) 216,911
Changes in models/risk parameters (133,942) (295,093)
Amount related to Restricted Investment Accounts (5,653) 615,209 (191,754) (69,294)
Amount written off 89,882 105,132 139,595 137,062
Exchange differences 111,779 436,543 (317,043)
At 31 December 2020 (53,808) (78,272) (15,634)
(110,039) 40,745 –
11,681 (163,013) 3,038,966
3,084
– – –
(2,225) 122,297
(293) (317,043)
1,209,931 (13,116)
574,213
1,254,822

240

NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

64. THE OPERATIONS OF ISLAMIC BANKING SCHEME (“IBS”) (CONT’D.)

(m) Derivative financial instruments

The table below shows the fair value of derivative financial instruments recorded as assets or liabilities, together with their principal amounts. The principal
amount, recorded gross, is the amount of the derivative’s underlying asset, reference rate or index and is the basis upon which change in the value of
derivatives are measured. The principal amounts indicate the volume of transactions outstanding at the financial year end and are indicative of neither
the market risk nor the credit risk.

The Group enters into derivative financial instruments at the request and on behalf of its customers as well as to hedge the Group’s own exposures and
not for speculative purpose.

2021 2020

Principal <------------ Fair Values -----------> Principal <------------ Fair Values ----------->
amount amount
Group RM’000 Assets Liabilities RM’000 Assets Liabilities
RM’000 RM’000 RM’000 RM’000
Trading derivatives
Foreign exchange related contracts 8,617,698 26,173 (35,464) 7,302,204 16,665 (215,360)
574,349 2,475 (2,475) 881,114 8,609 (8,609)
Currency forward: 6,242 (6,242)
– Less than one year 2,704,174 2,498,574 30,465 (30,465)
– One year to three years 19,239
– More than three years 15,398,762 (65,804) 15,836,028 180,934 (260,507)
65
Currency swaps: 400,910 (1,283) 426,413 11,262 (865)
– Less than one year 38
7,157 (38) 1,161 10 (10)
Currency spots: 7,548
– Less than one year 2,114,560 112 (7,548) – – –
24,137 (112) 2,092,853 31,242 (31,242)
Currency options: 7,759
– Less than one year 405,012 69,651 (7,759) 415,320 2,135 (2,135)
30,246,759 281,322 (549,193)
Cross currency profit rate swaps: (126,725) 29,453,667
– Less than one year
– One year to three years 490,000 4,185 (4,185) 80,340 456 (452)
– More than three years 4,622,648 37,370 (36,085) 1,490,000 35,702 (35,702)
(10,550) 2,145,654 67,823 (70,955)
Profit rate related contracts 392,321 6,214
(50,820) 3,715,994 103,981 (107,109)
Profit rate swaps: 5,504,969 47,769
– Less than one year (177,545) 33,169,661 385,303 (656,302)
– One year to three years 35,751,728 117,420
– More than three years

Total

(n) Other assets 2021 2020
RM’000 RM’000
Group
Amount due from holding company 4,037,035 1,785,952
Prepayment and deposits 16,079 21,796
Tax recoverable
Other debtors 171,447 319,391
1,486,025 1,331,873

5,710,586 3,459,012

(o) Statutory deposits with central banks

The non-profit bearing statutory deposit maintained with BNM is in compliance with the requirement of the Central Bank of Malaysia Act 2009, the
amount of which is determined as set percentages of total eligible liabilities.

MAYBANK ANNUAL REPORT 2021 241 OUR PERFORMANCE
Pg. 1-6
NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

64. THE OPERATIONS OF ISLAMIC BANKING SCHEME (“IBS”) (CONT’D.) THE FINANCIALS
Pg. 7-267
(p) Property, plant and equipment

Group Office Computers Motor Total
Furniture, and Vehicles RM’000
As at 31 December 2021 RM’000
Fittings, Peripherals 1,637
Cost Equipment and RM’000 402 15
At 1 January 2021 – 1
Additions Renovations 139 –
Exchange differences RM’000 13 1,653
– 402
At 31 December 2021 1,096 658
2 152 116 446
Accumulated depreciation 1 79
At 1 January 2021 36 – 3
Depreciation charge for the financial year (Note 64(ah)) 1,099 30 1,107
Exchange differences 195
506 – 546
At 31 December 2021 337 66 207
1,619
Net carrying amount 3 86 399 3
At 31 December 2021 846 –
139 3 15
253 – 1,637
– 402
As at 31 December 2020 1,081 161
3 139 34 505
Cost 83
At 1 January 2020 12 7 (1) (8)
Additions 1,096 30 116 658
Exchange differences (1)
120 36 286 979
At 31 December 2020 392
103
Accumulated depreciation (6)
At 1 January 2020 506
Depreciation charge for the financial year (Note 64(ah))
Exchange differences 590

At 31 December 2020

Net carrying amount
At 31 December 2020

242

NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

64. THE OPERATIONS OF ISLAMIC BANKING SCHEME (“IBS”) (CONT’D.) Premises 2020
RM’000
(q) Right-of-use assets 2021
RM’000
Group
Cost 15,148 15,096
At 1 January (1,793) –
Modification
Exchange differences (5) 52
At 31 December
Accumulated depreciation 13,350 15,148
At 1 January
Depreciation charge for the financial year (Note 64(ah)) 5,247 2,130
Modification 2,503 3,129
Exchange differences (527)
At 31 December –
Net carrying amount 1 (12)
At 31 December
7,224 5,247

6,126 9,901

(r) Deferred tax 2021 2020
RM’000 RM’000
Group
At 1 January 449,812 83,002
Recognised in income statement (Note 64(ai)) (461,634) 270,826
270,826
Relating to origination and reversal of temporary differences (35,221)
Over provision in prior year (428,546) –
Effect of increase in income tax rate –
Recognised in statement of comprehensive income 2,133
At 31 December 95,984
(178,794)
449,812
(190,616)

Presented after appropriate offsetting as follows: 2021 2020
RM’000 RM’000
Group
Deferred tax assets (213,155) (180,238)
Deferred tax liabilities 22,539 630,050
At 31 December
(190,616) 449,812

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set-off current tax assets against current tax liabilities and when
the deferred income taxes relate to the same fiscal authority.

MAYBANK ANNUAL REPORT 2021 243 OUR PERFORMANCE
Pg. 1-6
NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

64. THE OPERATIONS OF ISLAMIC BANKING SCHEME (“IBS”) (CONT’D.) THE FINANCIALS
Pg. 7-267
(r) Deferred tax (cont’d.)
The component and movement of deferred tax assets and liabilities during the financial year prior to offsetting are as follows:
Deferred tax assets of the Group:

Group Impairment Other Total
losses on temporary RM’000
As at 31 December 2021 financing, differences
financial (180,238)
At 1 January 2021 RM’000
Recognised in income statement: investments (35,056)
and other 2,139
Relating to origination and reversal of temporary differences
Effect of increase in income tax rate financial assets (213,155)
RM’000
At 31 December 2021
(175,686) (4,552)

(32,024) (3,032)
2,235 (96)

(205,475) (7,680)

As at 31 December 2020 (18,487) (3,863) (22,350)
(157,199) (689) (157,888)
At 1 January 2020
Recognised in income statement (175,686) (4,552) (180,238)

At 31 December 2020

Deferred tax liabilities of the Group: FVOCI Unabsorbed Profit Other Total
reserve capital on financing temporary RM’000
Group RM’000 moratorium differences
As at 31 December 2021 allowances 630,050
At 1 January 2021 RM’000 RM’000 RM’000
Recognised in income statement: (165)
201,319 21 428,546 164 (428,546)
Relating to origination and reversal of temporary differences
Over provision in prior year – (1) – (164) (6)
Effect of increase in income tax rate – – (428,546) – (178,794)
Recognised in statement of comprehensive income – (6) – –
At 31 December 2021 (178,794) –– – 22,539

22,525 14 – –

As at 31 December 2020 105,335 17 – – 105,352
At 1 January 2020 – 4 428,546 164 428,714
Recognised in income statement ––
Recognised in statement of comprehensive income 95,984 – 95,984
21 428,546
At 31 December 2020 201,319 164 630,050

Deferred tax assets have not been recognised in respect of the following items: 2021 2020
Unutilised tax losses RM’000 RM’000

177,258 158,974

The Group has not recognised deferred tax assets in respect of unused tax losses from International Currency Business Unit (“ICBU”) as it is not probable
that future taxable profits will be available against which they can be utilised.

Pursuant to Finance Bill 2021, the tax losses can be utilised up to a maximum of ten consecutive years effective retrospectively from year of assessment 2019.

244

NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

64. THE OPERATIONS OF ISLAMIC BANKING SCHEME (“IBS”) (CONT’D.) 2021 2020
RM’000 RM’000
(s) Deposits from customers
26,302,000 –
Group 3,496,477 23,708,048
Savings deposits 23,708,048
Murabahah 29,798,477
Qard

Demand deposits 32,042,236 –
Murabahah 1,362,014 26,703,462
Qard
33,404,250 26,703,462

Term deposits 115,751,729 114,498,944
Murabahah 560,459 357,789
Qard
116,312,188 114,856,733
Total deposits from customers
179,514,915 165,268,243

During the financial year ended 31 December 2021, the Group changed the underlying shariah contract for deposits from customers from Qard to
Murabahah for certain applicable products.

(i) The maturity profile of term deposits are as follows:

Group 2021 2020
RM’000 RM’000
Within six months
Six months to one year 98,667,962 93,537,277
One year to three years 17,388,379 11,127,134
Three years to five years 10,167,779
227,460
28,387 24,543

116,312,188 114,856,733

(ii) The deposits are sourced from the following types of customers: 2021 2020
RM’000 RM’000
Group
Business enterprises 54,833,256 55,608,359
Individuals 51,692,158 45,188,774
Government and statutory bodies 36,389,382 32,798,930
Others 36,600,119 31,672,180

179,514,915 165,268,243

MAYBANK ANNUAL REPORT 2021 245 OUR PERFORMANCE
Pg. 1-6
NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

64. THE OPERATIONS OF ISLAMIC BANKING SCHEME (“IBS”) (CONT’D.) 2021 2020 THE FINANCIALS
RM’000 RM’000 Pg. 7-267
(t) Investment accounts
28,720,799 23,840,796
Group 30,147,795 –
Investment accounts of customers
– Unrestricted investment accounts1
Restricted investment accounts managed by the Group2

(i) Movements in the investment accounts are as follows:

Group Unrestricted Restricted Total Restricted
2021 investment investment investment investment
Funding inflows/(outflows) accounts1
At 1 January 2021 RM’000 accounts accounts accounts
New placement during the financial year RM’000 of customers managed by
Redemption during the financial year 23,840,796
Profit payable 42,089,839 RM’000 the Group2
Transfer from on-balance sheet (Note 64(u)) (37,209,403) RM’000

At 31 December 2021 (433) – 23,840,796 –
–
2020 – 42,089,839 610,725
Funding inflows/(outflows) 28,720,799
At 1 January 2020 – (37,209,403) –
New placement during the financial year 20,616,075
Redemption during the financial year 48,131,364 – (433) 25,112
Profit payable (44,901,140)
– – 29,511,958
At 31 December 2020 (5,503)
23,840,796 – 28,720,799 30,147,795
(ii) Investment accounts are sourced from the following type of customers:
121,595 20,737,670 –
– 48,131,364 –
(45,022,716) –
(121,576) –
(19) (5,522)
–
– 23,840,796

Group Unrestricted Restricted
2021 investment investment
Business enterprises accounts1
Individuals RM’000 accounts
Government and statutory bodies managed by
Licensed banks
Others the Group2
RM’000
2020
Business enterprises 16,564,421 –
Individuals 10,159,957 –
Government and statutory bodies –
Others 205,058 29,511,958
– 635,837

1,791,363 30,147,795

28,720,799

13,328,580 –
9,200,552 –
112,309 –
1,199,355 –

23,840,796 –

246 Unrestricted Restricted
investment investment
NOTES TO THE accounts1
FINANCIAL STATEMENTS RM’000 accounts
managed by
31 December 2021
the Group2
64. THE OPERATIONS OF ISLAMIC BANKING SCHEME (“IBS”) (CONT’D.) RM’000

(t) Investment accounts (cont’d.) 23,666,368 –
(iii) The maturity profile of investment accounts are as follows:
3,560,977 8,099,298
Group 1,483,337 54,362
2021
– Without maturity 4,741 3,715,037
– With maturity 5,376 18,279,098
5,054,431 30,147,795
Within six months
Six months to one year 28,720,799 30,147,795
One year to three years
Three years to five years 18,243,257 –

2020 4,241,279 –
– Without maturity 1,342,789 –
– With maturity –
9,158 –
Within six months 4,313 –
Six months to one year 5,597,539
One year to three years –
Three years to five years 23,840,796

(iv) The allocation of investments asset are as follows: Unrestricted Restricted
investment investment
Group accounts1
2021 RM’000 accounts
Retail financing managed by
Non-retail financing
Corporate Sukuk the Group2
RM’000
2020
Retail financing 26,965,529 –
Non-retail financing 1,755,270 24,819,965
–
5,327,830
28,720,799
30,147,795

22,550,499 –
1,290,297 –

23,840,796 –

MAYBANK ANNUAL REPORT 2021 247 OUR PERFORMANCE
Pg. 1-6
NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

64. THE OPERATIONS OF ISLAMIC BANKING SCHEME (“IBS”) (CONT’D.) THE FINANCIALS
Pg. 7-267
(t) Investment accounts (cont’d.)
(v) Profit sharing ratio and rate of return are as follows: Investment account holder
(“IAH”)
Group
2021 Average profit Average rate
Investment accounts of customers sharing ratio of return
– Unrestricted investment accounts1 % %
Restricted investment accounts managed by the Group2
29.55 1.18
78.41 3.20

2020 36.53 1.64
Investment accounts of customers 99.95 4.03
– Unrestricted investment accounts
– Restricted investment accounts3

1 Included in the unrestricted investment accounts are funds received from the Multi-Asset Investment Account-i (“MAIA”) product of RM254.1 million which are
managed by the Group. 50% of the funds are invested in the Group’s financing assets managed by a subsidiary of the Bank as part of its Islamic banking activities
and are recorded as on-balance sheet. The remaining 50% of the funds are invested in marketable securities with net asset value of RM261.3 million as at 31
December 2021 managed by a subsidiary of the Bank as part of its investment management activities and are recorded as off-balance sheet.

2 Included in the restricted investment accounts managed by the Group is an arrangement between MIB with the Bank and with the third party where MIB acts as
an investment agent to manage and administer the restricted investment accounts amounting to RM29,512.0 million and RM635.8 million respectively. The amount
of restricted investment accounts managed by MIB are disclosed net of any impairment allowances required on the underlying financial assets funded by the
restrictred investment accounts.

3 As at 31 December 2020, the restricted investment accounts have been fully withdrawn.

(u) Deposits and placements from financial institutions

Group 2021 2020
RM’000 RM’000
Mudharabah Fund
Licensed banks1 – 28,997,440

Non-Mudharabah Fund 21,378,327 7,662,450
Licensed banks 948,712 549,213
Licensed Islamic banks 250,764 49,721
Licensed investment banks
Other financial institutions 1,592,324 1,512,028

24,170,127 9,773,412

24,170,127 38,770,852

1 As at 31 December 2020, included in the Mudharabah deposits and placements from licensed banks is the RPSIA placed by the Group’s conventional operations amounting
to RM28,997.4 million. These placements are used to fund certain specific financing and advances and purchase of financial investments at amortised cost instruments.

Effective 31 December 2021, the Mudharabah deposits and placements of licensed banks funded by RPSIA amounting to RM29,512.0 million were recorded off-balance
sheet under the operations of IBS, upon revision in the agreement between MIB with the Bank. Details of these Mudharabah deposits and placements are disclosed in
Note 64(t) under restricted investment accounts managed by the Group.

(v) Other liabilities

Group Note 2021 2020
RM’000 RM’000
Due to holding company (i)
Other creditors, provisions and accruals (ii) 671,832 463,922
Provisions for commitments and contingencies 1,457,874 224,144
Allowances for impairment losses on financing commitments and financial guarantee contracts
Lease liabilities – 47,918
Structured deposits 50,720 36,341

5,957 9,896
3,592 1,161

2,189,975 783,382

248

NOTES TO THE
FINANCIAL STATEMENTS

31 December 2021

64. THE OPERATIONS OF ISLAMIC BANKING SCHEME (“IBS”) (CONT’D.)

(v) Other liabilities (cont’d.)
(i) Movements in the allowances for impairment losses on financing commitments and financial guarantee contracts are as follows:

Group Stage 1 Stage 2 Stage 3 Total
RM’000
As at 31 December 2021 12-month Lifetime ECL Lifetime ECL
ECL not credit credit 36,341
At 1 January 2021 impaired –
Transferred to Stage 1 RM’000 RM’000 impaired –
Transferred to Stage 2 RM’000 –
Transferred to Stage 3
Net remeasurement of allowances 26,366 9,592 383 (20,776)
New credit exposures originated or purchased 76 (76) – 40,726
Credit exposures derecognised (18) 18 – (5,765)
Changes in models/risk parameters (98) –
Exchange differences 563 98 (38)
(22,761) 1,422 232
At 31 December 2021 31,073 9,653 50,720
(3,190) (2,294) –
(281) 26,682
1 (39) –
216 16 – –
– –
31,665 17,433
1,622 (728)
16,653
As at 31 December 2020 20,003 4,541 2,138 (6,191)
337 (327) (10)
At 1 January 2020 6,163 – (15)
Transferred to Stage 1 (6,163) 73 (60)
Transferred to Stage 2 – (73) 36,341
Transferred to Stage 3 355 (1,772)
Net remeasurement of allowances 689 2,260 – 2020
New credit exposure originated or purchased 14,393 (3,294) RM’000
Credit exposure derecognised (2,851) (16) (46) 12,228
Changes in models/risk parameters (17) –
Exchange differences 1 – 398
(43) 9,592 (2,728)
At 31 December 2020 383
26,366 –
(2)
(ii) The movement in lease liabilities are as follows: 2021 9,896
RM’000
Group 2020
At 1 January 9,896 RM’000
Finance cost on lease liabilities 297
Lease obligation reduction 5,458
Modification (2,843) 15,798
Exchange differences (1,394) 21,256
At 31 December
1

5,957

(w) Provision for taxation and zakat 2021
RM’000
Group
Taxation 10,197
Zakat 28,602

38,799